Konexa, a UK-based energy developer and investor, has secured development funding from Climate Fund Managers (CFM) to advance Phase Two of its renewable energy expansion in Nigeria. The funding will support the development of a new renewable energy supply to power two Nigerian Breweries Plc (NBPlc) sites in Lagos and Ama, supporting NBPlc in its transition to 100% renewable energy supply.
The investment was announced earlier today at a ceremony marking the signing of a Power Purchase Agreement (PPA) between Konexa and NBPlc, which is part of the Heineken Group. CFM, a climate-focused blended finance investment manager and existing investor in Konexa will provide development funding via its EU-supported Climate Investor One fund. Konexa and third-party co-financiers will also provide funding.
The funding will advance the development of a new renewable power project that will supply reliable green energy to the two NBPlc sites and other commercial and industrial (C&I) clients, along with the necessary infrastructure to connect these sites to the grid. Once operational, the project is expected to offset 46,000 tonnes of CO2 equivalent emissions annually, comparable to removing 11,000 gas-fuelled cars from the road. The project will create 100 construction jobs and 35 permanent jobs.
In his remarks, the Managing Director of Nigerian Breweries Plc, Hans Essaadi, expressed excitement about the PPA, which is poised to boost its operations and reduce reliance on fossil fuels. Essaadi said: “This partnership underscores our commitment to reducing carbon emissions, lowering operational costs, and achieving net zero before 2030. Nigerian Breweries recognises the critical role of renewable energy infrastructure in Nigeria, particularly amidst frequent outages. Our collaboration with Konexa demonstrates our dedication to accelerating the transition to renewable energy in our operations, and we look forward to a successful partnership with Konexa and their sponsors CFM, given their solid track record in renewable energy deployment in Africa.”
Pradeep Pursnani, CEO of Konexa, said: “With CFM’s support, we are advancing the development of key renewable energy infrastructure in Nigeria, helping companies like NBPlc transition to sustainable, reliable power and reduce their costs. This project is a significant step forwards in achieving NBPlc’s, and Nigeria’s, renewable energy and decarbonisation goals and an example of working in partnership with the Transmission Company of Nigeria and the Distribution companies to catalyse investment to make improvements in the network and bring large customers back on to the grid.”
Darron Johnson, Regional Head of Africa at CFM said: “Phase Two of our investment in Konexa is another crucial step forward in the modernisation of Nigeria’s power grid. By integrating sustainable energy sources into the grid, Konexa’s platform helps its clients reduce their reliance on fossil fuels, while also strengthening the grid’s resilience and driving sustainable economic growth.”
Through Konexa’s community development programme, 300 households in Nigeria’s Kaduna State region have been connected to electricity. The villages of Chikaji Gwari and Chikaji Tsakiya, which have a population of around 1,200, received 200 new connections and the introduction of solar appliances, facilitated by a financing scheme. Additionally, a savings scheme was established to improve asset ownership and credit access. A programme including training initiatives for farming and women’s income-generating activities is helping to diversify the community’s earnings beyond agriculture.
The Phase Two initiative is the second phase of Konexa’s renewable energy expansion into Nigeria and builds upon the success of Phase One announced in March 2024, which saw the establishment of a private renewable electricity trading platform and the supply of green energy to two NBPlc sites in Kaduna State. Investors in Phase One included CFM with funding provided by the European Commission, alongside Microsoft’s Climate Innovation Fund.
CFM previously invested in Konexa’s project to transition drone company Zipline’s Kaduna State and Cross River State operations to 100% solar power; with funding also provided by the European Commission.
