BayWa r.e. and Huhtamaki, a global leader in sustainable packaging solutions, have agreed to a 10-year Virtual Power Purchase Agreement (VPPA) for two new solar projects in Spain. This is the largest European solar corporate VPPA for the packaging sector, as well as the first signed by a Finnish corporation.
The deal for 200 GWh of green power per year will satisfy around 80% of Huhtamaki’s electricity demands in Europe, equating to an annual savings of over 89,000 tons of CO2 and enough electricity to power over 25,000 families.
Huhtamaki and BayWa r.e. were able to reach an agreement on the VPPA in just eight weeks, thanks to their dedication and excellent teamwork.
“Supporting Huhtamaki on its road to attaining the company’s sustainability goals is another major milestone in BayWa r.eown .’s commitment to accelerating the corporate energy transition that is so critical to meeting global climate targets,” said Matthias Taft, CEO of BayWa r.e. The signing of this landmark VPPA in record time exemplifies the collaborative partnership that has been built, and we look forward to continuing to collaborate.”
The VPPA will now contribute significantly to Huhtamaki’s goal of achieving carbon neutral generation and using 100 percent renewable power by 2030.
“We are completely dedicated to assisting the transition to a zero-carbon economy and have a climate policy with defined objectives and action plans to reduce all of our emissions,” stated Charles Héaulmé, President and CEO of Huhtamaki. Renewable power is critical to meeting our goals, and the deal we recently signed with BayWa r.e. indicates that considerable progress can be made in a short period of time.”
The VPPA, Huhtamaki’s first and the first signed with BayWa r.e., is built around an innovative pricing mechanism that benefits both parties during times of high power costs and current supply chain issues with PV modules.
“More and more enterprises, from ever-expanding industrial sectors, are sourcing renewables and putting PPAs in place to accomplish carbon reduction objectives while also ensuring savings against energy price volatility,” says Daniel Parsons, Head of PPA EMEA, BayWa r.e. We are delighted to be assisting Huhtamaki as they lead the way in the packaging business, and I hope that this inspires other firms to do the same.”
Both parties are also committed to conserving and promoting biodiversity during the project’s construction and operation. This would include steps to encourage the presence of flora within the solar park’s border, as well as the construction of ponds for invertebrates and amphibious species, perching and nesting spaces for birds, and reptile refuges.
The two projects in Southern Spain, with a combined capacity of roughly 135 MWp, will begin construction in the second half of 2022, with energy supply to Huhtamaki expected to begin in the third quarter of 2023.