The company that produces Dano milk, Arla Foods Nigeria, has released a four-year energy transition plan that aims to construct a solar power plant with an installed capacity of 750KVA by 2027 for its state-of-the-art dairy farm in Kaduna State.
Speaking during the 2023 Nordic Nigeria Connect inaugural session in Lagos, Peder Pedersen, the managing director of Arla Foods Nigeria, revealed this.
According to Pederson, the energy transition plan is in line with the company’s sustainability strategy and goal to develop a dairy industry that, via taking steps to strengthen the earth and enhance the environment, would inspire and promote global health in the future.
He mentioned that because the Damau farm is not connected to the national grid, it has been running on diesel generators since its opening in May 2023.
During the energy transition deep dive session, Akalaka Obazei, Senior Manager of Corporate Affairs, provided an overview of the company’s solar power implementation plan.
Phase one of the project, according to Obazei, would consist of a hybrid system using 250kVA conventional solar power and diesel. This system would save over 143, 910 Euros in diesel costs per year and reduce carbon emissions by roughly 300–350 tons annually with a one-year payback period.
According to her, electricity generation is anticipated to increase to an installed capacity of 550kVA between 2024 and 2025, and when the farm enters full operation in 2027, it will reach its maximum potential of 750kVA.
Regarding project funding, she mentioned that Arla’s 8500 farmer-owners will provide the funding since they have a long-standing commitment to sustainability and a strong belief in the energy transition.
