February 27, 2023

Tingo Foods partnering with energy company to build $150M solar plant

Tingo Foods Plc, a wholly owned subsidiary of MICT Inc., has partnered with Evtec Energy Plc to build a $150 million solar plant to power its new $1.6 billion food processing facility.

The net-zero carbon emission plant in Nigeria’s Delta State is scheduled to be completed by the first half of 2024.

Tingo Foods Plc has partnered with Evtec Energy Plc to build a new $150 million solar plant. Pictured is an example of a solar farm. Photo: File

The new processing facility, announced earlier this month, will allow Tingo Foods to expand its current product range of beans, rice, pasta, noodles and other food staples into new offerings including tea, coffee, cereals, chocolate, biscuits, cooking oils, non-dairy milks, carbonated drinks, and mineral water.

Tingo Foods aims to reduce Africa’s reliance on the import of finished food and beverage products and to increase exports of made-in-Africa produce, which in turn is expected to reduce the prices of finished products and significantly reduce shipping miles and carbon emissions.

“Our partnership with Evtec Energy is a significant step toward establishing a sustainable and innovative future for Nigeria’s and Africa’s agro-industrial sectors,” Dozy Mmobuosi, founder of Tingo Mobile Ltd. and Tingo Foods Plc, said in a news release. “Our commitment to create jobs and boost economic growth is unwavering and through our collaboration with leading technology experts we can realize our vision of a green and prosperous future for Africa.

“This is just the beginning of our journey into the sustainable energy sector, and we look forward to exploring new possibilities for collaboration and innovation in the future.”

The on-site, 110-megawatt solar plant will utilize the technology of TAE Power Solutions Ltd. Its cost will be funded by Evtec Energy and that company’s financial partners: Credit Suisse, JPMorgan, and Roth (subject to the agreement of financial terms and conditions).

“The addition of a sustainable energy zero carbon emissions power plant to our state-of-the-art food processing plant is yet another major milestone toward our commitment to the United Nations’ Sustainable Development Goals and toward fulfilling our ESG objective,” Darren Mercer, MICT CEO, said. “In addition to the considerable environmental benefits gained from using on-site renewable energy to power what is expected to be the largest food processing facility in Africa, we will achieve a considerable saving against energy costs, thereby enhancing margins and the overall profitability of this hugely exciting and potentially vast business within our group.”

Under partnership terms, Tingo Foods will enter into a Power Purchase Agreement. Additionally, Tingo Foods, Evtec Energy and technology partner TAE Power will explore similar projects throughout Nigeria and sub-Saharan Africa.

“At Evtec we are committed to building successful communities. At our core, we want to make a difference to society by helping people lead fulfilling lives and, therefore, to have a positive impact on the communities in which we are based globally,” said David Roberts, Evtec Group chair. “We are hugely enthused that Tingo Foods and MICT share our values, and we look forward to working with them and building a mutually beneficial and long-term relationship.”

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