Danish developer Better Energy has entered into a power purchase agreement (PPA) with Danish dairy company Arla to build four new solar parks.
Over a 10-year period, Arla has committed to purchasing most of the power output from the parks.
The parks will produce approximately 250GWh annually and the PPA will cover about one third of Arla Denmark’s total electricity consumption.
The first solar power production from the parks is expected from early 2023, and all the parks are scheduled to supply electricity by the beginning of 2024.
Better Energy owns and is responsible for the construction, operation and maintenance of the solar parks that total 280 hectares.
The four solar parks will all be located in Denmark. The first park will be built in Ebberup in Assens Municipality, while the final location of the remaining three parks is awaiting approval.
The first park will be built in Ebberup in Assens Municipality, while the locations of the remaining three parks await final approval.
The collaboration marks the largest power purchase agreement in Danish history supplying new and additional subsidy-free green electricity to the grid.
The cooperation will help to cut of Arla’s emissions from dairies and logistics, said Country Director at Arla Denmark Helle Müller Petersen.
Arla’s goal is to convert to 100% green power by the end of 2025 and it has also just announced a new 2030 climate target to double CO2 reduction in operations from 30% to 63%.
As part of this new climate strategy, Arla will convert to 100% green electricity in Europe before the end of 2025.
This is to be achieved primarily through purchase agreements for green electricity and investment in wind and solar projects.