BayWa r.e. and Huhtamaki, a leading global provider of sustainable packaging solutions, have signed a 10-year Virtual Power Purchase Agreement (VPPA) for two new solar projects in Spain. This marks the largest European solar corporate VPPA for the packaging industry, as well as the first solar corporate VPPA signed by a Finnish company.
The agreement for 200 GWh per year of green power will cover approximately 80% of Huhtamaki’s electricity needs in Europe and is equivalent to an annual saving of over 89,000 tons of CO2, and enough electricity to power almost 25,000 households per year.
Thanks to the commitment and strong collaboration between Huhtamaki and BayWa r.e., the VPPA was agreed from beginning to signing in just eight weeks.
Matthias Taft, CEO of BayWa r.e., commented: “Supporting Huhtamaki on its journey to achieving the company’s sustainability goals represents another important milestone in BayWa r.e.’s own commitment to advancing the corporate energy transition that is so pivotal to meeting global climate targets. The signing of this milestone VPPA in record time demonstrates the collaborative relationship that has been established and we look forward to continuing to work together.”
The VPPA will now make a significant contribution towards Huhtamaki’s ambition to achieve carbon neutral production and use 100% renewable electricity by 2030.
Charles Héaulmé, President and CEO of Huhtamaki, said: “We are fully committed to supporting the transition to a zero-carbon economy and have a climate strategy with clear targets and action plans to address all our emissions. Renewable electricity plays a major role in delivering on our ambitions and the agreement we have just signed with BayWa r.e. demonstrates that it is possible to achieve significant progress in a short time.”
The VPPA, which is Huhtamaki’s first and the first signed with BayWa r.e., is structured with an innovative price mechanism that benefits both parties during times of high electricity costs and current supply chain challenges with PV modules.
Daniel Parsons, Head of PPA EMEA, BayWa r.e., adds: “More and more corporations, from ever widening industry sectors, are sourcing renewables and putting PPAs in place to achieve carbon reduction targets while also securing savings against electricity price volatility. We are proud to be supporting Huhtamaki as they lead the way in the packaging industry and I hope it encourages other corporations to follow.”
Both parties are also committed to protecting and fostering biodiversity during the construction of the project and throughout its operation. This will include measures to promote the existence of vegetation inside the perimeter of the solar park as well as the installation of ponds for invertebrates and amphibious species, perching sites and nesting areas for birds, and refuges for reptiles.
Construction of the two projects in Southern Spain, which have an aggregate capacity of approximately 135 MWp, will commence by the second half of 2022, with planned start of energy delivery to Huhtamaki in Q3 2023.