Rachel Carr is an in-house writer for Food & Beverage Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the...
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Tiger Brands is set to significantly reduce its environmental footprint by entering a groundbreaking electricity wheeling agreement with Apollo Africa, aiming to source renewable energy and drastically cut greenhouse gas emissions across its Gauteng manufacturing sites by 2028.
Tiger Brands has signed a significant electricity wheeling agreement with renewable energy supplier Apollo Africa to reduce its scope 1 and 2 greenhouse gas (GHG) emissions, starting with its manufacturing sites in Gauteng.
This agreement is set to begin in 2028 and represents a substantial step in the company’s transition to cleaner energy sources.
Also known as ‘power wheeling’, this process involves transmitting energy from sustainably sourced power generators to end users across different regions of the country through the national power grid.
The transaction involves swapping Eskom-generated electricity for renewable-energy electricity supplied by Apollo Africa through a Power Purchase Agreement (PPA). This PPA commits Tiger Brands to sourcing a specific quantity of electricity from renewable sources, such as wind or solar farms.
Praveen Balgobind, Tiger Brands’ Chief Manufacturing Officer, stated that the wheeling agreement will allow the company to procure renewable energy generated off-site and transmit it across the national grid to its manufacturing facilities in Gauteng.
This approach enables Tiger Brands to access clean energy without being limited by the physical locations of generation plants, providing greater flexibility in sourcing sustainable electricity.
STRATEGIC STEWARDSHIP
By 2028, approximately 60 percent of the electricity supplied to Tiger Brands’ sites by the Ekurhuleni Municipality will be sourced under this wheeling agreement.
“Importantly, as our business grows, cost efficiency is maximised, all while reducing our carbon footprint. This is a clear example of how we are working across our value chain to bring the best value and affordable nutrition to consumers while reducing the impact of our operations on the environment.”
The wheeling agreement forms part of Tiger Brands’ long-term sustainability strategy, which includes energy efficiency, responsible sourcing, and environmental stewardship across its operations.
31 percent of electrical energy from renewable sources
Zero waste to landfill at all sites
50 percent reduction in food production waste
80 percent of plastic packaging is recyclable or compostable
25 percent recycled content in polyethylene terephthalate (PET) packaging
This wheeling agreement is part of a multi-phase journey toward a lower-carbon footprint. In addition to renewable energy procurement through the wheeling agreement, Tiger Brands continues to explore innovative solutions to reduce emissions, conserve resources, and enhance operational performance.
“Wheeling is one of the most effective tools available to South Africa’s large energy users right now, and Tiger Brands is deploying it exactly as it should be, strategically, at scale, and anchored to a clear decarbonisation roadmap,” says Nico de Bruyn, CEO, Apollo Africa.
“Apollo Africa was built to structure and deliver agreements like this one. Our expertise in navigating the wheeling mechanism means we can unlock flexible, cost-competitive renewable energy access for manufacturers without them being constrained by where generation assets are physically located. Tiger Brands is one of South Africa’s most iconic businesses, and we take the responsibility of supporting their 2030 Environmental Stewardship targets seriously. This is the beginning of a long partnership, and we intend to deliver on it.”
This article was produced by the editorial team at Food & Beverage Outlook and published as part of the Outlook Publishing global network of B2B industry magazines.
Outlook Publishing delivers industry insights, company stories, and sector coverage across food production, manufacturing, supply chains, construction, healthcare, mining, and sustainability.
Food & Beverage Outlook provides ongoing coverage of organisations and developments shaping the global food and beverage sector.
Rachel Carr is an in-house writer for Food & Beverage Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the magazine, corporate brochures, and the digital platform.
