Henkel and IGNIS, the Spanish integrated renewable energy group, have signed a ten-year Virtual Power Purchase Agreement (VPPA) relating to two new solar power plants in Spain. Henkel’s portion of the produced electricity equals the demand of more than 40 production sites of the company in Europe.
With the help of such long-term VPPAs, Henkel contributes to additional renewable energy generation. The agreed amount of electricity will be fed into the public supply grid. The new solar energy power plants will be located in Castilla y León and Andalucía (Spain) and will avoid 72,000 tons of CO2-emissions each year, compared to the general electricity generation from fossil resources. With an overall production volume of around 220,000 MWh per year, the solar parks are scheduled to be connected to the grid in summer 2024. Henkel’s agreement covers around 90 percent of the project’s total electricity capacity.
“At Henkel, we are on a journey toward an environmental transformation of our business model. As we aim for climate-positive operations by 2030, projects like this VPPA are an important lever to increase the share of green energy available in the grid and to thereby accelerate the broader conversion from fossil to renewable energy,” said Ulrike Sapiro, Chief Sustainability Officer at Henkel. “This VPPA is the most impactful multi-year renewable energy contract for Henkel in Europe. We appreciate our cooperation with IGNIS and look forward to breaking ground on this fantastic project,” added Petra Spallek, Henkel Corporate Vice President Purchasing.
VPPAs, along with a combination of on-site production of renewable electricity and direct purchases, will help Henkel to meet its global target of 100 percent renewable electricity for its worldwide production sites by 2030.
This agreement strengthens IGNIS’ contribution to decarbonization of industry and sets a milestone in its consolidation as a leading integrated energy company. As a global firm, IGNIS is focused on PPA agreements with a track record of renewable energy projects worldwide.
“IGNIS is strongly committed to becoming one of the key Independent Power Producers in Europe and supports its clients in the energy transition around the world. We are proud to have signed this agreement with Henkel and to become one of their partners for the use of renewable energy,” said Santiago Bordiú, CEO of Asset and Energy Management of IGNIS.
The solar plants will be constructed and fully operated by IGNIS, adding to a portfolio of more than four GW of operational assets already managed by the company. Henkel was advised on the VPPA by Schneider Electric’s Sustainability Business.