- This is a first-of-its-kind for Air Liquide to contribute financially to the Group’s decarbonisation and sustainability strategy.
- The contract provides for the supply of renewable energy certificates from Polish wind farms linked to newly installed renewable production capacity.
Air Liquide has signed a long-term Virtual Power Purchase Agreement (“VPPA”) with Statkraft, the largest producer of renewable energy in Europe. This is the first of its kind for Air Liquide to contribute financially to the Group’s decarbonisation and sustainability strategy.
A Virtual PPA, also known as a Financial PPA, is an innovative transaction exchanging a fixed price for a variable price and renewable energy certificates. Completing such contracts benefits both renewable electricity producers and industrial consumers in the long term.
It enables the seller to secure a given level of income, and it grants the buyer visibility and stability on part of its energy sourcing costs. Sourcing renewable energies through Power Purchase Agreements is one of the levers to support Air Liquide’s strategic plan objectives of reaching a -33 per cent reduction of scope 1 & 2 of its absolute CO2 emissions by 2035 and carbon neutrality by 2050.
Also, the contract provides for the supply of renewable energy certificates from Polish wind farms linked to newly installed renewable production capacity. It will contribute to reducing CO(2) emissions of Air Liquide by 38,000 tonnes/year and help customers in Poland decarbonize their operations by using industrial gases with a lower carbon footprint.
This agreement also supports the country’s target to reach at least a 23% share of renewable energies in final energy consumption in 2030.
Furthermore, Jérôme Pelletan, Chief Financial Officer and member of the executive committee, said: “The conclusion of this Financial PPA is a first-of-its-kind for Air Liquide. It demonstrates the strong commitment and innovation from all teams, business and finance, to contribute to meeting our climate objectives. This will clear the path for the signature of more contracts of this type.”