The renewables arm of BayWa has signed an 135MW virtual power purchase agreement (VPPA) with packaging provider Huhtamaki for electricity from two solar farms in Spain.
The deal totalling 200 gigawatt-hours a year is for 10 years and will cover approximately 80% of Huhtamaki’s electricity needs in Europe.
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.
Construction of the two projects in southern Spain will start by the second half of 2022, with the planned start of energy delivery to Huhtamaki in the third quarter of 2023.
BayWa r.e. chief executive Matthias Taft said: “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.”
Huhtamaki president and chief executive Charles Heaulmw 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.”
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.