Arla now covers its entire electricity consumption in Europe with power from renewable energy sources. This includes 46 production sites across seven countries and represents 93 per cent of the company’s total electricity consumption.
– We are constantly working to make our supply chain more sustainable, and reaching 100 per cent renewable electricity is a major achievement that we are very proud of. Not least because it has been made possible through long-term agreements linked to concrete projects that increase access to renewable electricity across the EU and the UK, says David Boulanger, Executive Vice President of Supply Chain at Arla Foods, in a press release.
The renewable energy is sourced through a combination of market-based certificates and long-term Power Purchase Agreements (PPAs) entered into in recent years. A PPA is a contract between an electricity producer and an off-taker for the supply of electricity over a number of years at a fixed price. David Boulanger explains:
– Energy companies often need the additional security of having a guaranteed customer before committing to major investments in renewable energy, such as wind or solar parks. They look for partners like us who can purchase their electricity at a commercially viable price – and not just for a few years, but over the long term. By entering into long-term PPAs, we are demonstrating our continued commitment to producing dairy products as sustainably as possible – both now and in the future.
The remaining share of electricity consumption is covered by certificates, a smaller portion of which is purchased directly from Arla farmers for electricity generated on their farms, for example through wind turbines or solar panels. This ensures that farmers receive the best possible remuneration for their electricity production, while also contributing directly to Arla’s transition to renewable energy.
Arla will now explore the possibility of using renewable electricity at its sites outside Europe as well.
By Lene Mikkelsen Walsh
Photo: Solar park in Fjällskär near Nyköping, Sweden. Mikael Tannus / Svea Solar.
