Partnership with Clarke Energy will enable Nestlé to save 30% on fuel cost annually.
Nestlé Nigeria Plc. has pioneered the use of compressed natural gas (CNG) as a fuel source for its Flowergate Factory, enabling the leading Nutrition, Health and Wellness company in the West African economic powerhouse to reduce recurrent electricity cost by 30 percent.
The CNG facility, which was engineered by Clarke Energy, specialist gas and cogeneration concern, represents a watershed on the use of gas supply in Nigerian communities where gas infrastructure is non-existent.
Flowergate Factory receives its regular CNG using specially designed vehicles, to serve as a back-up against unforeseen disruptions in the national supply.
Nestlé is a key player in the Nigeria economy and its stock is among the best performing for several years now.
Thus the successful demonstration of the use of CNG as a catalyst for manufacturing performance has attracted the attention of other industry players.
Nestlé partnered Clarke Energy owing to the shortfall in electricity supply from Nigeria’s national grid, which remains unreliable. At the same time, the cost of diesel shot up to $1 per liter, representing a huge operational cost for the company.
The choice for CNG also hinged on the fact that aside being a reliable source of power generation, gas is proven to be highly cost effective and clean.
These factors were in sync with the Nestlé Group’s commitment to environmentally-sustainable business practices at all stages in its manufacturing processes, including the efficient use of natural resources.
Basile Kouamen, Flowergate Factory Manager commented on the CNG innovation:
“The utilization of compressed natural gas for the generation of power has enabled us to make significant fuel cost savings. This is an important transition until we are able to receive our own pipeline gas supply. Our previous experiences of the use of the Jenbacher product along with Clarke Energy’s aftersales support were key factors in making our decision”.
Patrick Nzekwe, Clarke Energy’s General Manager in Nigeria stated:
“In order to make early operational cost savings, Nestlé Flowergate Factory in Nigeria has pioneered the use of CNG as a fuel source for electricity production. The reliability of GE Jenbacher gas engines, backed up with our aftersales support, has proved to be a win-win for both Nestlé and Clarke Energy”.