October 22 (Renewables Now) - Spanish dairy company Grupo Lactalis Iberia SA has signed a nine-year power purchase agreement (PPA) with Engie Espana, securing renewable electricity for its factories, warehouses and offices across Spain.
The PPA between the France-founded companies ensures an annual supply of around 70 GWh, enabling Grupo Lactalis to cover at least 50% of its power demand in the Iberian country.
The agreement will come into force on January 1, 2021.
Engie said Tuesday it will supply the contracted electricity from its Spanish portfolio of renewable power plants. The PPA will also support the company’s strategy to invest, build and manage new renewable energy assets in Spain.
The Lactalis group runs eight factories in Spain, where it employs 2,500 people. Through the latest renewable power deal, the dairy producer stands to reduce its carbon dioxide emissions by 10% per year, Engie said.