DENMARK – Global bioscience company, Chr. Hansen has signed a 10-year agreement Power Purchase Agreement (PPA) with Danish company, Better Energy to power Chr. Hansen’s Denmark operations with green electricity.
Under the agreement, Better Energy Denmark will supply green energy to the ingredients supplier from two brand new solar parks that have just been taken into operation.
Chr. Hansen further noted that Energy Denmark will also support the agreement by being responsible for creating a balance between consumption and production of electricity and handling the difference that will always exist when the sun doesn’t shine.
In that way, the company said that its energy supply will be secured with power production from a mix of several other renewable sources like wind and biogas. The move will see Chr. Hansen’s good bacteria and natural colors produced on 100% green energy in Denmark.
Chr. Hansen revealed that it will take 67% of the annual energy production from the new parks, which corresponds to the consumption of 15,000 Danish households and reflects the company’s annual energy demand for its operations in Denmark, which makes up 40% of the global consumption for the Group.
The Danish company, which was awarded as the world’s most sustainable company in 2019 and this year came in second on the prestigious list published by Canadian Corporate Knights, said that it is committed to minimizing its carbon footprint.
“We want to contribute positively to the transition to green energy,” says Annemarie Meisling, senior director of Sustainability, Chr. Hansen.
“That is why we have decided to buy solar energy from Better Energy’s two new parks so that our good bacteria and natural colors have a green footprint, both externally with our customers and on our home turf where some of our largest production sites are located.”
According to an update by the company, its production plant in Copenhagen, Denmark’s capital, accounts for more than 70% of Chr. Hansen Denmark’s total electricity consumption, whereas headquarters in Hoersholm north of Copenhagen accounts for around 15%.
Chr. Hansen’s two other Danish factories, located in Roskilde south west of Copenhagen and in Graasten close to the German border, account for the rest.
Peter Munck Søe-Jensen, EVP for Power Production & Asset Management in Better Energy, comments that the agreement with Chr. Hansen is a good example of how companies can assume joint responsibility for creating new energy from renewable sources to the benefit of the entire country:
“Chr. Hansen’s purchase of electricity from our two new solar parks in the next 10 years is groundbreaking.
“Today it is possible to choose a new green energy supply that makes a true difference because it directly supports the development of new renewable energy sources. In the transition towards renewable energy supply, companies can make a world of difference by buying new green energy,” he explains.
Chr. Hansen expects to replicate the model in other countries. Jesper Deela Nielsen, senior manager in Global Sourcing, Chr. Hansen revealed that the company is in dialogue with different suppliers of renewable energy in the US to power its operations with green energy.
According to Nielsen, the company’s business and production in the US have an energy consumption that is around half of that of Chr. Hansen in Denmark. Nielsen says that securing a solid agreement in the US is vital, especially as the company plans to expand production over the next years.