BayWa r.e. and Huhtamaki, a global leader in sustainable packaging solutions, have signed a 10-year Virtual Power Purchase Agreement (VPPA) for two new solar projects in Spain. These are the largest solar corporate VPPA in the European packaging industry and the first solar corporate VPPA for a Finnish company.
The contract includes the supply of more than 200 GWh of green electricity per year, which covers about 80% of Huhtamaki's electricity needs in Europe and corresponds to an annual saving of more than 89,000 tons of CO2. This is enough electricity to supply nearly 25,000 households per year.
Thanks to the dedication of both teams and the close cooperation between Huhtamaki and BayWa r.e., the virtual power purchase agreement was brought to signature in just eight weeks.
First VPPA of Huhtamaki
Matthias Taft, CEO of BayWa r.e., comments, "Supporting Huhtamaki in achieving its sustainability goals is another important milestone in BayWa r.e.'s efforts to help companies implement the energy transition. After all, these play a crucial role in meeting global climate targets. The signing of the VPPA in record time underlines the excellent cooperation with Huhtamaki. We look forward to further joint projects."
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The VPPA makes a significant contribution to Huhtamaki's goal of making all manufacturing activities CO2-neutral by 2030 and sourcing 100% of its electricity from renewable energy sources.
Charles Héaulmé, President and CEO of Huhtamaki, says: "We want to play a key role in supporting the transition to a carbon-free economy, and have a climate strategy with clear targets and planned actions to reduce our emissions. Electricity from renewable sources plays a key role in this, and the electricity supply contract signed with BayWa r.e. shows that it is possible to make significant progress in a short time."
The VPPA is Huhtamaki's first virtual power purchase agreement and also the first with BayWa r.e. It includes an innovative pricing mechanism that benefits both parties in times of high electricity costs as well as the current challenges in the PV module supply chain.
Also protecting and promoting biodiversity
Daniel Parsons, Head of PPA EMEA at BayWa r.e., adds, "More and more companies from increasingly diverse industries are sourcing electricity from renewables and entering into PPAs to meet their CO2 emissions reduction targets while hedging against fluctuating electricity prices. We are proud to help Huhtamaki lead the way in the packaging industry, and I hope this will encourage other companies to follow the same path."
Both parties also commit to protecting and promoting biodiversity during the construction of the project, as well as during its operational life. This includes measures to promote vegetation around the solar farm, as well as the creation of ponds for aquatic animals and amphibians, perches and nesting sites for birds, and refuges for reptiles.
Construction of the two projects in southern Spain, with a total capacity of approximately 135 MW, is scheduled to begin in the second half of 2022. Start of power supply to Huhtamaki is planned for the third quarter of 2023. (hcn)
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