Arla Foods Nigeria, maker of Dano milk is planning a four-year energy transition that will see it build a solar plant at its Kaduna dairy farm, aiming to generate up to 750KVA by 2027, for increased production.
Peder Pedersen, managing director, Arla Foods Nigeria, disclosed this during the opening session of the 2023 Nordic Nigeria Connect held recently in Lagos, with the theme “Innovation for a greener future”.
Pederson explained that the energy transition plan aligns with the company’s sustainability strategy and vision to create the future of dairy that brings health and inspiration to the world, naturally, by taking actions that support a stronger planet, thereby improving the environment for future generations.
He noted that the farm in Damau, Kaduna State, has been operating on diesel generators since its inauguration in May 2023, as there is no connectivity to the national grid.
In his presentation, Akalaka Obazei, senior manager, corporate affairs, Arla Foods Nigeria, gave a breakdown of the company’s plan for the implementation of the solar power transition of the company.
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Obazei stated that phase 1 of the project would be a hybrid solution of 250kVA standard solar plus diesel that will lead to an annual diesel cost saving of about Euro 143, 910 while also reducing carbon emissions (CO2e) by about 300-350 tonnes per year with one-year payback period.
She further noted that the power generation was expected to grow to 550kVA installed capacity between 2024 and 2025, while the full potential of up to 750kVA was expected to be achieved by 2027 when the farm reaches full operation
Speaking on the company’s preparedness for energy transition, she said, “Right from inception during the farm design phase, we had the energy transition in our minds, we have the roof space that can give us the targeted 750kVA already in place, and there is room for further expansion”.
On financing for the project, she noted that Arla’s 8500 farmer-owners would be bankrolling the project as they strongly believe in energy transition and in line with their long-time commitment to sustainability.
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Obazei added that businesses, including Arla Farm, must shift toward renewable energy, mainly due to the increasing cost of fossil fuel and its environmental implications.
Similarly, Snorri Sigurdsson, senior manager, raw milk supply and production, Arla Foods, described Arla farm in Kaduna, as the ‘most advanced in Africa’, saying it was designed with the highest standards and operates with global best practices.
According to Sigurdsson, the farm, which has a high-yielding breed from the best European farms, boasts state-of-the-art technology for optimal cow comfort and performance of both cows and feed.
He said Arla Foods was committed to sustainable dairy farming in Nigeria and investing in backward integration to enable Nigeria to become self-sufficient in milk production.
