The South African division of Danone, a global dairy product manufacturer, has teamed up with Moshesh Cogeneration, a special-purpose vehicle owned by Moshesh Partners, and Clarke Energy.
The collaborative effort aims to deliver a full turnkey Combined Heat and Power (CHP) facility and microgrid controller to enhance energy resilience while reducing carbon emissions. This is a significant move toward achieving its global commitment to Net Zero carbon emissions by 2050
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Transitioning Toward Sustainability
Danone’s dairy product manufacturing facility in Boksburg, Gauteng, operates round-the-clock, producing a range of dairy products, including Nutriday yoghurt and Ultramel custard. In 2023, Danone realigned its sustainability objectives under the “Impact Journey” initiative, focusing on three key pillars: Health, Nature, and People. Under the “Nature” pillar, Danone set a clear path to achieve Net Zero carbon emissions by 2050, with the microgrid project serving as a pivotal component to help transition the facility towards that goal.
The chosen gas-fired power generation system offers significant carbon reduction benefits compared to grid coal-fired power or diesel generation. Danone will utilise the Jenbacher Combined Heat and Power (CHP) system to recover waste heat in the form of steam and hot water, further lowering its carbon footprint. Additionally, in the face of the ongoing power supply challenges in South Africa, including frequent grid failures, the microgrid solution promises to deliver resilient power supplies, ensuring maximum uptime for the 24/7 manufacturing plant. Furthermore, the hydrogen-ready CHP solution can be easily converted to hydrogen operation once a sufficient supply becomes available.
Ownership and Operation
Moshesh Cogeneration, acting as an independent power provider, will take charge of owning and operating the plant for a substantial 20-year period under a Power Purchase Agreement (PPA) contract with Danone. Clarke Energy, selected as the Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) partner, will supply a 5 MW combined heat and power solution. This solution comprises two of INNIO Group’s J616 Jenbacher containerized engines, a waste heat boiler, and a 75,000-litre thermal store that will feed the existing hot water distribution system.
A Comprehensive Microgrid
The integrated microgrid control systems will bring together the CHP engines, four existing diesel gensets, an existing solar photovoltaic arrangement supplied by a third party, and the grid itself. This integration will harness the benefits of energy-efficient CHP technology and renewable solar power. In times of local grid failures, the microgrid system will ensure business continuity through energy resilience, delivering cleaner power to the facility.
Senior Director for Operations and Design to Deliver at Danone Sub-Saharan Africa, Kid Nkantsu, highlighted the significance of the project for Danone’s commitment to Net Zero carbon emissions. He emphasised the microgrid solution’s role in enabling Danone to become independent from the grid, increase production uptime, and integrate various distributed energy resources, including hydrogen, all while reducing the carbon footprint.
Sifiso Shongwe, the CEO of Moshesh Partners Fund Management, expressed enthusiasm about the collaboration with Danone, describing it as a significant step forward in South Africa’s renewable energy transition. He hopes that this milestone will inspire other organisations to consider similar renewable energy investments to combat climate change and drive economic growth in a socially responsible manner.
Clarke Energy’s Managing Director for sub-Saharan Africa, Yiannis Tsantilas, expressed delight at being selected for this project, highlighting its potential as a new example of a microgrid system that delivers resilient power for industries in the region.
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Danone
Since 1995, Danone Southern Africa has been dedicated to bringing health through food to as many people as possible. As a leading food and beverage company selling essential dairy products (Inkomazi, Nutriday, YogSip, DanUp, Mayo, and Ultramel), Danone aims to inspire healthier and more sustainable eating and drinking practices.
Moshesh Partners
A majority black-owned and black-managed investment fund manager, Moshesh Partners Fund Management, based in Johannesburg and Cape Town, focuses on investment into renewable energy and sustainable infrastructure, including energy, water, telecoms, and transport.
Clarke Energy
Clarke Energy, part of Kohler Energy, is a leader in the engineering, design, installation, and long-term maintenance of distributed energy solutions. Clarke Energy can deliver complex installations and microgrids incorporating gas engine CHP units, battery energy storage systems, biogas upgrading systems, and solar photovoltaic units. Clarke Energy can supply solutions including a range of low carbon or decarbonized fuels including biogas, renewable natural gas (RNG), and hydrogen. Clarke Energy operates in 27 countries, employs over 1,300 staff, and has over 7.4 GW of power generation, 1.4 GW of which is from biogas, a renewable fuel.