Tiger Brands has signed a landmark electricity wheeling agreement with renewable energy supplier Apollo Africa to help reduce its scope 1 and 2 greenhouse gas (GHG) emissions, beginning with its manufacturing sites in Gauteng. Set to commence in 2028, the agreement marks a significant step in the company’s transition to cleaner energy sources.
Also known as “Power Wheeling”, wheeling is the process of transmitting energy from sustainably sourced power generators to end users in different regions of the country via the national power grid.The transaction involves Eskom electrons being swapped for renewable energy electrons supplied by Apollo Africa under a Power Purchase Agreement (PPA). The PPA commits the business to sourcing a specified quantity of electricity from renewable energy sources such as wind or solar farms.
According to Tiger Brands’ Chief Manufacturing Officer, Praveen Balgobind, the wheeling agreement will enable Tiger Brands to procure renewable energy generated off-site and transmit it across the national grid to its manufacturing facilities in Gauteng. Through this approach, Tiger Brands can access clean energy without being limited by the physical location of generation plants, giving the business greater flexibility to source sustainable electricity.
Tiger Brands’ sites to be supplied via Ekurhuleni Municipality will receive approximately 60% of their electrical supply from wheeling by 2028.
“Importantly, 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,” says Balgobind.
The wheeling agreement forms part of Tiger Brands’ long-term sustainability strategy, which includes energy efficiency, responsible sourcing, and environmental stewardship across its operations.
Tiger Brands 2030 Environmental Stewardship targets:
- Reduce water and energy intensity by 30%
- Reduce carbon emissions by 30%
- 31% electrical energy from renewable sources
- Zero waste to landfill at all sites
- 50% reduction in production food waste
- 80% of plastic packaging recyclable/ compostable
- 25% recycled content in 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.”