Nigerian Breweries signs $10 million solar deal with CrossBoundary Energy

Nigerian Breweries Plc and CrossBoundary Energy have signed a $10 million solar power deal to develop the largest renewable energy project in Nigeria’s commercial and industrial sector.

The agreement, signed on Wednesday, November 2nd, will see CrossBoundary Energy build two solar and battery storage hybrid projects for Nigerian Breweries’ plants in Ibadan, Oyo State and Ama, Enugu State.

Nigerian Breweries’ Managing Director Hans Essaadi said the solar plants would help meet much of the company’s energy needs.

An exciting development: In a statement seen by Nairametrics, both Nigerian Breweries and CrossBoundary Energy described the deal as exciting. Mr Essaadi was quoted to have said:

• “We are delighted to be a pioneer in the adoption of solar energy in Nigeria. These additional solar plants will provide a significant portion of our electricity needs and put us well on our way to carbon neutrality.”

The chief Commercial Officer of CrossBoundary Energy James Shoetan, also expressed excitement over the deal, saying:

• “We are ecstatic to continue supporting Nigerian Breweries’ sustainability goals and to be providing multiple breweries with cleaner, cheaper power with no upfront investment or technical risk. CrossBoundary Energy is encouraged to see the expansion of the flagship project at NB Ibadan, thereby greatly increasing its sustainable footprint.”

Earlier flagship project: Nigerian Breweries Plc and CrossBoundary Energy earlier partnered to complete the first phase of the brewer’s solar power project in its Ibadan brewery, which was commissioned in 2021.

Capacity details: CrossBoundary Energy will expand the current renewable energy system at NB’s Ibadan Brewery from a 663-kilowatt peak (kWp) solar photovoltaic (PV) plant to a hybrid solar-plus-storage facility consisting of a 3-megawatt peak (MWp) solar PV system and a 2 MW/2 MWh battery energy storage system (BESS).

• NB’s Ama brewery will receive a 4 MWp solar PV plant and a 2 MW/2 MWh BESS.
• The solar plants combined will supply approximately 10 gigawatt hours (GWh) annually to the Ibadan and Ama breweries at a significant discount to their current cost of power.
• This project will reduce the site’s CO2 emissions by 100,000 tonnes over the lifespan of the plants.

Financing details: CrossBoundary Energy will fully finance the development and construction of the Ibadan and Ama renewable energy facilities, and will operate both facilities as part of a 15-year solar services agreement with NB Plc.

• Under the agreement, NB Plc will only pay for solar power produced, receiving a single monthly bill that incorporates all maintenance, monitoring, insurance, and financing costs.

Job creation: The projects will support the local employment of approximately 80 people during the construction phase, and at least two dozen people when the plants are operational.