Finland's Huhtamaki inks 10-year VPPAs for solar from BayWa

Finnish packaging solutions provider Huhtamaki Oyj (HEL:HUH1V) has inked two virtual power purchase agreements (VPPAs) with German renewables company BayWa r.e. AG tied to solar projects in Spain.

The 10-year contracts will see Huhtamaki offtake 200 GWh of electricity annually to meet around 80% of the total power consumption needs of its European operations, the Finnish firm said on Monday. According to it, the deals are the largest VPPA arrangement by a Finland-based company.

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To cover its commitment related to the contracts, BayWa will build two photovoltaic (PV) parks at unspecified locations in Spain. The plants will generate enough electricity to supply close to 25,000 homes per year and offset over 89,000 tonnes of carbon dioxide (CO2) emissions.

The VPPAs support Huhtamaki goal of using 100% renewable electricity across all of its operations and having carbon-neutral production by 2030. The packaging group owns 18 manufacturing sites in 10 European countries. “We are fully committed to supporting the transition to a zero-carbon economy and have a climate strategy with clear targets and action plans to address all our emissions,” said Charles Heaulme, president and CEO of Huhtamaki.

The Finnish group plans to seal more VPPAs “shortly,” with the next one expected to be in the US. It noted that it is meanwhile working to install on-site solar plants at some of its locations.