Swiss food and drink conglomerate Nestle has signed a power purchase agreement (PPA) with Axpo Germany for 50 gigawatt-hours of electricity a year from the latter’s German wind farms.
The five-year deal started on 1 January this year and represents approximately 30% of Nestle Germany’s power needs.
Axpo said that the PPA is flexible allowing Nestle Germany to buy additional electricity – including from third parties – and integrate it into the purchase agreement.
Nestle has already increased the share of wind power in its portfolio by an additional 30%, Axpo added.
Axpo Germany head of portfolio management Thomas Kott said: “As an experienced, pan- European PPA provider, Axpo systematically purchases electricity generated by renewable energies to develop bespoke and flexible supply solutions for industrial customers.
“We act as a mediator in this environment, bringing together plant owners and consumers. The agreement with Nestle Germany is a prime example of this.”
Nestle Germany head of corporate social responsibility Anke Stubing said: “This power purchase agreement helps our German plants manufacture in a more climate-friendly way and is an important step in achieving our ambitious climate goals.
“By 2025, we intend to supply all Nestle locations with electricity from 100 per cent renewable sources, such as wind and solar power.”