Pharmaceutical and chemicals giant Bayer will take green power from Europe’s largest solar array under a deal to run all its facilities in Spain on green electricity.
Bayer signed a 10-year deal with Spain-based global renewable energy pacesetter Iberdrola for 100% clean electricity for its nine Spanish sites, including three factories.
The deal, which starts from 2022 and is the first of its kind in Spain involving a pharma group, will be underpinned by power from the 590MW Francisco Pizarro, Europe’s largest solar PV project, which will enter service the same year.
The corporate power purchase agreement (PPA) – which adds to a deal between Iberdrola and Bayer in Mexico – continues the momentum behind deals between major companies and renewables operators in Spain and Europe as a whole.
As well as shielding their power supplies from the uncertainties of the market, the PPAs allow big corporates to meet stretching decarbonisation goals. In the case of Germany-based Bayer that means reaching net-zero by 2030.
Eduardo Insunza, Iberdrola's global director for large customers, said: “PPAs demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices in the long term.”
Iberdrola is one of the world’s most ambitious renewable energy developers, with the bulk of its €75bn ($88bn) of investments planned over the next six years dedicated to doubling its global base to 60GW.
At home in Spain the group has stressed the benefits of investment in renewables as an economic recovery tool post-Covid, and as a way to help former fossil regions achieve a viable economic transition.