Germany's Henkel inks solar VPPA with Ignis in Spain

German chemical and consumer goods company Henkel AG & Co KgaA (ETR:HEN3) said on Thursday it had signed a ten-year virtual power purchase agreement (VPPA) with Spanish renewables group Ignis.

The document is linked to power production from two new solar farms in Spain. Henkel’s contracted solar output matches the demand of over 40 production sites it operates in Europe, the German company said.

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Ignis will build and fully operate the solar farms, which will be located in the Spanish regions of Andalusia and Castile and Leon. Once up and running, the two plants will generate around 220 GWh per year. Their connection to the grid in scheduled for the summer of 2024.

Henkel aims at powering all of its production sites worldwide with 100% renewables by 2030, and is relying on a mix of VPPAs, on-site renewable power production and direct purchases to reach its target, the company added.