Energy Transition: Arla Foods unveils plan to build solar power plant in Damau farm, Kaduna State


Arla Foods Nigeria, maker of Dano milk, has unveiled a 4-year energy transition plan to build a solar power plant for its state-of-the-art dairy farm in Kaduna, aiming to generate up to 750KVA installed capacity by 2027.

The Managing Director, Arla Foods Nigeria, Peder Pedersen, disclosed this while speaking during the opening session of the 2023 Nordic Nigeria Connect held on Tuesday at the Lagos Intercontinental Hotel, 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 the same vein, the Senior Manager, Corporate Affairs, Arla Foods Nigeria, Akalaka Obazei, while making a presentation in the Energy Transition deep dive session, gave a breakdown of the company’s plan for the implementation of the solar power transition of the company.

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 tons per year with one-year payback period.

She further revealed that the power generation is expected to grow to 550kVA installed capacity between 2024 and 2025, while the full potential of up to 750kVA is 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 will be bankrolling the project as they strongly believe in energy transition and in line with their long-time commitment to sustainability. She added that businesses, including Arla Farm, must shift toward renewable energy, mainly due to the increasing cost of fossil fuel and its environmental implications.

In his presentation, Senior Manager, Raw Milk Supply and Production, Arla Foods, Snorri Sigurdsson, while advancing a solid case for the Arla farm in Kaduna, stated that there is no doubt that the farm is the most advanced in Africa given the fact that it was designed with the highest known standards in the world 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 noted that Arla Foods remains committed to sustainable dairy farming in Nigeria, stating that it is investing a lot in backward integration to ensure that Nigeria becomes self-sufficient in milk production.

About Arla Foods

Arla Foods is a dairy cooperative with over 8400 farmer owners in seven Northern European countries.

The company’s philosophy of producing natural, healthy, and high-quality dairy products dates back to the 1880s when dairy farmers in Denmark and Sweden joined forces with one common goal: To create and provide the best dairy products.

Arla Foods, owner of the Dano milk brand, commissioned the state-of-the-art dairy farm on May 25th 2023, the first Arla-owned farm in the company’s history. This serves as a testament to the company’s commitment to the sustainable development of the local dairy industry in Nigeria.

For further enquiries, contact:
Name: Akalaka Vony Obazei
Designation: Senior Manager, Corporate Affairs.
Email [email protected]
Phone +234 (0)8095547436

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