Huhtamaki to source renewable power under 42-MW VPPA

Huhtamaki Oyj (HEL:HUH1V) has signed a 42-MW virtual power purchase agreement (VPPA) with a subsidiary of NextEra Energy Resources LLC to source renewable electricity from a wind project in Texas.

The Finnish packaging company said on Thursday the VPPA, with a term of 12 years, covers about 30% of its power demand in the US and Mexico, where the company operates 18 manufacturing facilities.

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The renewable electricity will come from the Inertia Wind Energy Centre of about 300 MW, which is expected to come on stream in the Electricity Reliability Council of Texas (ERCOT) North Zone in Texas by the end of 2022.

The deal adds to a VPPA that Huhtamaki signed late last year with German renewables company BayWa re AG tied to solar projects in Spain. Under the European VPPA, Huhtamaki will offtake 200 GWh of electricity annually to meet around 80% of its European electricity usage.

The agreements are in line with Huhtamaki’s 2030 sustainability goals of using 100% renewable electricity and reaching carbon-neutral production.