South Africa’s largest fluid milk company, Clover Industries, whose products are common in Namibian households, has entered into a N$360-million “servitised” energy solution via Energy Partners to hamper load-shedding.
The servitisation aspect of the deal – where Clover pays for the service rather than the equipment – means that the dairy producer will only pay a fee per unit of the refrigeration and steam it uses, enabling a reduction of as much as N$792 million in operational costs over 20 years.
Manie de Waal, chief executive of Energy Partners, says the model highlights an opportunity for commercial and industrial businesses to increase their bottom line, while decreasing operational costs and risks in a very challenging economic environment.
Energy Partners’ servitisation model includes 100% investment, design, construction and utility management across power, refrigeration and steam assets.
The fact that Energy Partners will absorb the N$360-million capital expenditure means that Clover will have funds free to invest in Project Sencillo – a five-year, multi-phased plan targeting the improved utilisation and efficiency of company assets and processes.
Anton Pretorius, Clover’s group manager: product technology and technical services, says the move means that Clover will have access to a modern, automated plant that Energy Partners has committed to guarantee uptime and efficiency in line with industry standards.
The move could not have come at a better time, with the country having entered Stage 6 load-shedding and warnings of possible Stage 8 rolling blackouts in the winter months ahead.
Clover is hoping to see cooling efficiency increase by more than 40%, over and above the benefits of a reliable refrigeration and steam supply. The new plant is expected to reduce carbon emissions by 132 million tonnes over the next 20 years.
– Business Maverick
