Novartis has signed agreements with Acciona, EDP Renewables and Enel Green Power for the generation of renewable electricity.
The group has ratified virtual energy purchase agreements (VPPA) with these three energy providers that will contribute to the electrical system more than 275 megawatts (MW) of clean energy generated in Spain in solar plants and wind farms of new building.
Thanks to this initiative, Novartis will be the first pharmaceutical company to reach 100% renewable energy in its European operations through virtual energy agreements.
In this way, Novartis will contribute to the generation of wind and solar electricity from the promotion of six renewable energy projects in Spain.
The projects are slated to start operations in 2023 to achieve the company’s zero carbon footprint across all of its European operations over the next ten years, which is equivalent to taking more than 113,000 vehicles off the road annually.
Acciona will develop two solar plants, located in Almendralejo (Badajoz) and in Jarafuel and Ayora (Valencia), with a combined capacity of 169 MW, of which around 135 MW will be used to supply the VPPA with Novartis.
In addition, through the TICO Wind Farm, located in Villar de los Navarros (Zaragoza), Enel Green Power will supply Novartis with 79 MW of sustainable electricity.
Thanks to this agreement, the renewable energy lent to Novartis will prevent the annual emission of 96,400 tons of CO2 into the atmosphere.
On the other hand, EDP Renewables will develop a 36 MW wind farm in the province of Zaragoza and a 30 MW solar power plant in the province of Cádiz.
These European agreements follow the VPPA signed by the company with the Santa Rita East wind farm in Texas (United States), which provides 100% of the electricity used in Novartis operations in the United States and Canada.
Montse Montaner, Novartis’ director of sustainability, said that “environmental sustainability is aligned with our purpose of reimagining medicine to improve and prolong people’s lives. Energy efficiency and renewable energy solutions are the cornerstones of our strategy to reduce emissions. These agreements mark a milestone on our path to environmental sustainability to achieve carbon neutrality in all our operations by 2025 and throughout the supply chain by 2030 ”.
Schneider Electric has acted as global consultant on this transaction, while the law firm Baker McKenzie has advised Novartis on all legal matters related to VPPAs.