Danone to power its Spanish production plants with 100% renewable energy

SPAIN – Danone España, a subsidiary of French multinational food-products corporation Danone S.A., has signed a long-term power purchase agreement (PPA) with Iberdrola, a Spanish multinational electric utility company.

The agreement reinforces Danone’s zero net emissions commitment for 2050 and Iberdola’s strategy for renewable project developments in Spain.

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.”

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.

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

With a new large-scale customer on its fold, Iberdrola plans to make an investment of €300 million (about US$363 million) into the expansion of the Francisco Pizarro plant.

Upon completion, the photovoltaic plant will have a capacity of 590mW, reportedly making it the largest photovoltaic plant planned for Europe.

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.”

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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 (about US$363.82 million) will also see 245,000 tonnes of CO2 emissions per year saved and the employment of more than 1,200 workers, a statement from Danone España revealed.

Iberdola has also launched a major investment totalling €75 billion (about US$90.95 million) for the period 2020-2025 with the aim of doubling its renewable capacity.

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