Commercial, Solar, Sourcing Renewables - March 4, 2024
GSK Signs European Solar VPPA
Global biopharma company GSK announced it signed a virtual power purchase agreement (VPPA) for solar power in Europe.
The agreement was signed with Schneider Electric and IGNIS, a Spanish integrated renewable energy group, and will facilitate the supply of 200 GWh of renewable electricity certificates annually. This represents the reduction of an estimated 72,000 tons of CO2 emissions from new solar sites to GSK sites across mainland Europe.
GSK will fulfill approximately 50% of its total electricity demand in mainland Europe from the VPPA for 12 years and will start in mid-2026. The company’s footprint in mainland Europe includes 11 manufacturing sites, six R&D sites, and its commercial operations.
The two solar projects in central Spain will be constructed by IGNIS and will add renewable energy generation to the mainland European grid.
Schneider Electric Sustainability Business managed the go-to-market strategy, conducted project evaluation of the bids received, and advised during the PPA negotiation phase of this agreement.
GSK is committed to an 80% reduction in GHG emissions across all scopes by 2030 and a 90% reduction by 2045 from a 2020 baseline. The company is also committed to adding more renewable energy and is a partner of the RE100 initiative that calls for 100% imported renewable electricity by 2025 and 100% renewable electricity, imported and generated, by 2030.
“It’s clear that climate change is already having a negative impact on human health. That’s why GSK is committed to achieving net zero impact on climate across our entire value chain to improve the health of the planet and help get ahead of disease,” said Regis Simard, President of Global Supply Chain at GSK, in a statement. “This investment in renewable energy is a contribution towards our decarbonization goals, while also supporting business resilience by providing energy security and cost predictability in the long term.”
GSK’s Energize program is geared to increase the adoption of renewable electricity within the supply chain. The program has 20 sponsor companies from the pharmaceutical sector, with 560 registered suppliers who can access a renewable energy educational platform and can elect to aggregate their electricity demand to have access to more impactful renewable energy options like the VPPA.
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