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Schneider Electric: Energize Celebrates Pioneering PPA, Adding 280 MW of Solar Energy in Europe to Decarbonize Pharmaceutical Supply Chains.
The Energize program from Schneider Electric celebrates a groundbreaking power purchase agreement (PPA) that promises to drive renewable energy by adding over 280 MW of solar energy to European infrastructure. This milestone is a significant step towards decarbonizing supply chains, especially in the pharmaceutical sector, which will benefit from the increased presence of renewable energy on the grid.
This energy purchase contract, involving several companies, not only promotes the use of sustainable sources but also strengthens commitments to environmental responsibility. In addition to fostering the use of solar energy, the agreement drives significant advancements in Europe’s energy infrastructure. Thus, Schneider Electric advances its mission to bolster the grid with environmentally-friendly and efficient solutions.
Digital Transformation and Renewable Energy
A global leader in digital transformation for energy management and automation, the company announces remarkable innovations in the Energize program, which aims to decarbonize the supply chain of the pharmaceutical sector. The first group of buyers, comprised of eight companies, has come together to procure renewable energy through seven new solar projects deployed in Spain, in partnership with two power generators. With nearly 5% of all global emissions, the healthcare sector accounts for the majority of them in Scope 3.
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Every time a river flows into the sea, an amount of energy equivalent to a 120-meter waterfall is silently wasted, but Japan has just inaugurated the world’s first power plant that captures this waste and transforms it into electricity 24 hours a day without sun, wind, or fuel.
Energize: Decarbonization in the Pharmaceutical Industry
The Energize program was created to address current and prospective climate challenges and to mitigate their effects on human health by driving the decarbonization of the global supply chain of this industry. Among the supporters of the program are Takeda Pharmaceuticals International AG, Teva Pharmaceutical Industries, and UCB, along with suppliers such as Avantor, Organon LLC, Perrigo, and West Pharmaceutical Services Inc. This coalition has come together for a collective purchase of 305 GWh of renewable energy with Zelestra.
Takeda, Teva Pharmaceuticals, Labcorp, and West Pharmaceutical Services also acquired 258.7 GWh of energy from Bruc. In total, these companies have entered into 27 Power Purchase Agreements (PPAs) for an annual supply of 563.7 GWh of renewable energy over ten years, thereby avoiding approximately 393,000 metric tons of CO2 each year, equivalent to the energy consumption of 51,355 households. The joint investment will support three new solar projects from Zelestra and four others from Bruc, achieving a total capacity of over 280 MW.
Partnership and Commitment to Renewable Energy
This multilateral energy procurement model illustrates Energize’s goal of expanding access to renewable electricity in the supply chains of the pharmaceutical and healthcare industries, contributing to reducing the sector’s environmental impact. Since its inception in 2021, the program has empowered over 750 suppliers to procure renewable electricity. For 2024, five new partners – Almirall, Bayer, Kenvue, Sandoz, and Schott – have joined the initiative, raising the number of committed companies to 24 by 2028.
As a participant in the virtual PPA, Teva Pharmaceuticals demonstrates leadership and commitment to renewable energy, influencing both its sector and initiatives like Energize. Amalia Adler Waxman, head of Sustainability at Teva, asserts that a significant portion of their electricity needs in Europe is already satisfied, setting standards for a sustainable future and net-zero emissions goal.
Sustainable Future and Renewable Energy
Rachel Kaufman, vice president of Sustainability at Avantor, emphasizes that the Energize program is vital to their climate strategy, integrating substantial amounts of renewable electricity into their portfolio. As a strategic partner in the pharmaceutical sector, they support the decarbonization of the supply chain. Thomas Wozniewski, global director of Manufacturing and Supplies at Takeda, highlights that the health of the planet is linked to human health, necessitating a reduction of the environmental impact within their operations.
Katiana Iavarone, director of Supplies at UCB, acknowledges the need for collective action in the climate crisis and reinforces the commitment to ecological transition through renewable energy. They seek to amplify the impact of decarbonization through the Energize program, aiming for a sustainable future. Lisa Martin, director of Supplies at GSK, celebrates the advancements of Energize that mark their collaboration since 2021, playing a crucial role in the goal of reducing emissions in the value chain by 80% by 2030.
Integrated Internet of Things Solutions
The new solar energy agreement involving four GSK suppliers in Europe reinforces the commitment to decarbonization and transition to renewable energy. Schneider Electric, through its Sustainability area, acted as an advisor to the eight participants in the PPA procurement process, continuing to lead the management of Energize and collaborating with partners and the Pharmaceutical Supply Chain Initiative to promote new solutions for procuring renewable electricity.
Schneider Electric aims to create impact, empowering everyone to extract maximum energy and resources sustainably, committing to a sustainable future. A leader in industrial technology, it provides integrated IoT solutions with artificial intelligence, covering the lifecycle and enabling profitable growth for clients through automation, software, and connected services. With 150,000 employees globally, they promote diversity and inclusion, guided by a meaningful purpose.
Source: © Press SCHNEIDER ELECTRIC
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