Danone España and Iberdrola sign renewable energy agreement

Danone España has signed a long-term power purchase agreement (PPA) with Iberdrola, which will drive the development of what they claim will be Europe’s biggest photovoltaic plant.

The partnership will mean 100% of the renewable electricity used in Danone’s plants and factories in Spain will come from the Francisco Pizarro photovoltaic plant.

Following an investment of €300 million, the Francisco Pizarro plant will have a capacity of 590mW, reportedly making it the largest photovoltaic plant planned for Europe.

As part of the agreement, Iberdrola will supply green energy – 73 GWh per year – to the 29 supply points in Danone in Spain for ten years from April 2022.

Under the terms of the deal, Danone is guaranteed the long-term green supply of electricity to all of its Spanish production plants and natural water sources, located in Asturias, Barcelona, Gerona, Guadalajara, Granada, Madrid and Valencia; as well as its logistics centres and offices.

Iberdrola is currently building the plant in the municipalities of Torrecillas de la Tiesa and Aldeacentenera, in Cáceres, Extremadura and it is expected to be operational in 2022. The €300 million project will also see 245,000 tonnes of CO2 emissions per year saved and the employment of more than 1,200 workers.

The agreement reinforces Danone’s zero net emissions commitment for 2050 and Iberdola’s strategy for renewable project developments in Spain. Iberdola has launched a major investment totalling €75 billion between 2020-2025 with the aim of doubling its renewable capacity.

Danone España’s suppliers, Graham Packaging and Salvesen Logística, have also joined the alliance.

Ángeles Santamaría, CEO of Iberdrola España, said: “PPAs open the door to many opportunities for the development of renewable projects that are transforming the present and future of energy in our country and contributing towards its economic recovery.

“Long-term power purchase agreements provide stability to investments and have become the perfect tool for the management of the electricity supply for large consumers who are committed to clean and sustainable consumption.”

Paolo Tafuri, general manager of Danone Iberia, added: “This initiative will help us turn our ambitious environmental commitments into reality – goals that form part of our global strategy and affect our entire value chain.”