A VPPA (Virtual Power Purchase Agreement) that covers a 10-year period has been struck by BayWa r.e. and Huhtamaki, a renowned global supplier of sustainable packaging solutions, for 2 new solar ventures in Spain. This is the very first solar corporate VPPA committed by a Finnish company and the largest European solar commercial VPPA for packaging sector.

The arrangement for 200 GWh of green power per year will satisfy over 80% of Huhtamaki’s electricity demand in Europe, equating to an annual CO2 reduction of almost 89,000 tons and sufficient electricity to power nearly 25,000 families.

The VPPA was reached from start to finish in just eight weeks, thanks to Huhtamaki and BayWa r.e.’s excellent collaboration. “Supporting Huhtamaki on its path to achieving the company’s sustainability goals represents another major milestone in BayWa r.e’s commitment to furthering the corporate energy revolution that is so crucial to attaining global climate targets,” said Matthias Taft, CEO of BayWa r.e. The fact that this landmark VPPA was signed in record time reflects the constructive partnership that has been built, and we intend to continue to collaborate.” The VPPA will now contribute significantly to Huhtamaki’s goal of becoming carbon neutral and using 100 percent renewable electricity by the year 2030.

“We are fully dedicated to assisting the transition to the zero-carbon economy and also have a climate policy with defined targets and action strategies to reduce all of our emissions,” stated Charles Héaulmé, who serves as the President and Chief Executive Officer of Huhtamaki. Renewable electricity is critical to achieving our goals, and the agreement we recently signed with BayWa r.e. indicates that significant progress can be made in a short period of time.”

The VPPA, Huhtamaki’s first with BayWa r.e. is constructed with a novel price mechanism which does benefit both parties during periods of high power costs and current PV module supply chain issues.

“More and more enterprises, from ever broader industry sectors, are procuring renewables and placing PPAs in place to accomplish emissions reduction targets while also insuring savings against energy price volatility,” says Daniel Parsons, who works as the Head of the PPA EMEA, BayWa r.e. We are delighted to be helping Huhtamaki as they pave the way in packaging business, and I hope that this inspires other companies to follow in their footsteps.”

Both stakeholders are also committed to preserving and promoting biodiversity during the project’s construction and operation. This would include steps to encourage the presence of vegetation within the solar park’s border, as well as the construction of ponds for amphibious and invertebrate species, birds perching and nesting locations, and reptile refuges. Construction on the two ventures in Southern Spain, that have a combined capacity of around 135 MWp, will begin in the 2nd half of 2022, with energy delivery to Huhtamaki expected to begin in Q.

Leave a Reply

Your email address will not be published. Required fields are marked *