Tiger Brands signs electricity wheeling deal with Apollo Africa

Tiger Brands has signed an electricity wheeling agreement with Apollo Africa, as the food producer accelerates efforts to reduce carbon emissions and transition its manufacturing operations to cleaner energy sources.

The agreement, which is expected to commence in 2028, will initially supply Tiger Brands’ manufacturing sites in Gauteng with renewable electricity transmitted through the national grid under a power purchase agreement (PPA).

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Power wheeling allows companies to buy electricity generated from renewable energy projects, such as solar or wind farms located elsewhere in the country, with the power transmitted via existing grid infrastructure.

Tiger Brands said sites supplied through the Ekurhuleni Municipality network are expected to receive about 60% of their electricity supply from wheeled renewable energy by 2028.

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Chief manufacturing officer Praveen Balgobind said the agreement forms part of the company’s broader sustainability strategy and would help reduce its Scope 1 and Scope 2 greenhouse gas emissions while improving long-term energy efficiency.

“Importantly, as our business grows, cost efficiency is maximised, all while reducing our carbon footprint,” said Balgobind.

The company’s 2030 environmental stewardship targets include reducing water and energy intensity by 30%, cutting carbon emissions by 30%, sourcing 31% of electrical energy from renewable sources, and achieving zero waste to landfill across all sites.

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Apollo Africa chief executive Nico de Bruyn said wheeling has become an important mechanism for large energy users looking to access renewable power without being constrained by the location of generation facilities.

“Tiger Brands is one of South Africa’s most iconic businesses, and we take the responsibility of supporting their 2030 environmental stewardship targets seriously,” he said.

The deal comes as more South African corporates turn to renewable energy procurement and wheeling arrangements to reduce exposure to electricity supply risks, manage costs and meet sustainability commitments.

* Likho Mbuka is a Moneyweb intern.

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