MICT, Inc. (NASDAQ: MICT) (“MICT” or the “Company”) has announced that its wholly owned subsidiary, Tingo Foods Plc (“Tingo Foods”), has entered into a partnership with Evtec Energy Plc (“Evtec Energy”), who have committed to build a $150 million net zero carbon emission solar plant to provide a sustainable and low-cost energy source to power Tingo Foods’ multi-billion dollar food processing facility.
The state-of-the-art $1.6 billion Tingo Foods processing facility in the Delta State of Nigeria is scheduled to be completed by the end of the first half of 2024. The new facility, believed to be the largest in Africa, is expected to multiply the food processing capacity and revenues of Tingo Foods, allowing it to expand its current product range of rice, pasta, noodles, and other staple foods into new product areas such as tea, coffee, cereals, chocolate, biscuits, cooking oils, non-dairy milks, carbonated drinks, and mineral water. Through this first-of-its-kind facility in Nigeria, 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.
By constructing its own on-site 110 megawatt solar power plant using the advanced energy-tech of Evtec Energy and utilizing the technology of TAE Power Solutions Limited (“TAE Power”), Tingo Foods expects its food processing facility to achieve net zero carbon emissions while also benefiting from considerable energy cost savings.
The $150 million cost of the solar power plant is to be funded by Evtec Energy and their financial partners: Credit Suisse, JPMorgan, and Roth (subject to the agreement of financial terms and conditions). Under the terms of the partnership, Tingo Foods will enter into a Power Purchase Agreement (PPA). Additionally, through their partnership and collaboration, Tingo Foods, Evtec Energy and their technology partner TAE Power will explore similar projects throughout Nigeria and Sub-Saharan Africa.
Dozy Mmobuosi, founder of Tingo Mobile Limited and Tingo Foods PLC, commented: “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. 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.”
Darren Mercer, Chief Executive Officer of MICT, commented: “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 objectives.
“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.”
David Roberts, Chairman of the Evtec Group, commented “We are delighted to partner with Tingo Foods to deliver this important and transformational project. The scheme is perfectly aligned with our ethos and commitment toward sustainability and, ultimately, delivering net zero carbon emissions. I am equally delighted that we have been able to call upon the leading clean energy expertise of TAE Power Solutions to help us deliver the optimal technology for the new plant.
“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. 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.”
