US food group Kraft Heinz Co (NASDAQ:KHC) has signed a 12-year virtual power purchase agreement (VPPA) with Spanish multi-energy group Repsol SA (BME:REP) to source wind power from 34.2 MW of capacity in Spain, the two said today.
The capacity is part of Repsol's Delta II project, which is currently under development and will consist of 26 wind farms totalling 860 MW in the region of Aragon, northern Spain.
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Repsol will be supplying more than 90 GWh a year of electricity to Kraft Heinz, equivalent to powering about 90% of its European manufacturing facilities.
The contract is the first wind energy investment by Kraft Heinz. It will advance the food company’s targets of sourcing most of its electricity demand from renewables by 2025 and halving its greenhouse gas emissions by 2030.
Both Kraft Heinz and Repsol also seek to achieve carbon neutrality by 2050. Repsol is looking to reach 6 GW of installed renewable capacity in 2025 and 20 GW in 2030.
"This new agreement with Kraft Heinz once again confirms the potential and attractiveness of our renewable assets for companies that are looking for guaranteed coverage of their long-term energy needs and, at the same time, obtain greater stability, which favors their competitiveness," commented Repsol's executive director of low carbon generation Joao Costeira.