Clover’s Solar-Powered Servitisation Partnership Fuels Efficiency in South Africa’s Queensburgh Mega-Factory

Energy solutions company, Energy Partners (EP), has made a R360 million investment in South African dairy company, Clover S.A., to implement a servitisation model at its Queensburgh mega-factory. Under this agreement, EP has designed, built, and will operate and maintain an integrated refrigeration, power, and steam plant for the next 20 years, with Clover paying a fee based on the units of refrigeration and steam it uses. This approach is expected to reduce Clover’s operational costs by approximately R792 million over the duration of the agreement.

EP’s CEO, Manie de Waal, highlights the significance of this model in helping commercial and industrial businesses improve their bottom line, lower operational costs, and mitigate risks in a challenging economic environment. By shifting the capital investment burden to EP, Clover can focus on its Project Sencillo initiative, aimed at enhancing asset utilization and efficiency.

Anton Pretorius, Clover’s Group Manager for Product Technology and Technical Services, emphasizes that the lack of upfront investment and access to a modern, automated plant with guaranteed uptime and efficiency have resulted in lower operational costs and positioned Clover at the forefront of efficient and sustainable technology.

Despite the 18-month construction process, which included an ammonia cooling plant, a boiler house, and a 1.6 MW solar system, Clover experienced minimal disruptions to its operations. The servitisation agreement ensures a reliable supply of refrigeration and steam, with a 40% increase in cooling efficiency and an estimated avoidance of 132 million tons of CO2 emissions over the 20-year term. Both parties consider the partnership a win-win situation amidst the challenges faced by South Africa’s commercial and industrial sectors.