Agricultural technology company Syngenta, and state-owned Norwegian hydropower and renewable energy production company Statkraft, the largest producer of renewable energy in Europe, announced today a new virtual power purchase agreement (vPPA), providing wind energy to help decarbonize Syngenta’s plants in Europe.
The new agreement will cover Syngenta’s CP & Seeds operations for a period of five years and will provide 125 GWh of green electricity per year, for a total of 625 GWh by the end of the contract in 2030.
The vPPA is a financial supply contract that allows a company to support renewable energy without having to physically purchase the electricity.
According to Syngenta, the virtual agreement will allow the company to pursue its sustainability targets without having to change its operational processes, while enabling it to support clean energy facilities.
Syngenta Head CP Global Sourcing Rachel Stenson Bugnonb said:
“This is Syngenta’s first vPPA, marking a pivotal step in our decarbonization strategy. This tailored approach allows us to make meaningful progress toward our carbon reduction targets for Syngenta AG while maintaining operational efficiency across our European facilities.”
According to Syngenta and Statkraft, under the vPPA Statkraft will map the entire generation capacity of onshore wind turbines in Germany based on an artificial wind farm, enabling customized electricity supply offers for companies. Additionally, Syngenta will secure green electricity indexed to the electricity spot market for a period of five years. Under the contract, Syngenta receives the certificates of origin for the agreed green electricity volume.
Statkraft Vice President Central European Origination Sascha Schröder said:
“We are delighted to support Syngenta with this tailor-made PPA solution to decarbonize its production. We are building a bridge between operators of wind farms that are no longer eligible for subsidies, who typically prefer short delivery terms, and companies seeking long-term green power procurement that integrates smoothly into their established sourcing strategy.
