Pharmaceutical leader Merck has taken substantial steps towards its commitment to renewable energy by inking power purchase agreements (PPAs) with Matrix Renewables and Renantis for five renewable energy projects in Spain. These agreements will contribute a combined capacity of around 130MW, comprising two wind projects totaling 37MW and three solar projects exceeding 88MW.
The virtual PPAs, each with a ten-year term, position Merck to receive an ample supply of energy certificates (Guarantee of Origin, issued by the AIB as part of the European Energy Certificate System). These certificates will cover all electricity consumed in 2022 across the company's three business sectors: Life Science, Healthcare, and Electronics, for all sites within the European Union and Switzerland.
The selection of Castile and Leon, Spain, as the project location is a strategic move to harness the abundant renewable energy potential of the Iberian Peninsula. Merck's overarching goal is to have 80% of its globally purchased electricity sourced from renewable means by 2030. Additionally, they aim to reduce direct and indirect greenhouse gas emissions (Scope 1 and 2) by 50% by 2030, using a 2020 baseline as reference, all as part of a broader commitment to achieve climate neutrality by 2040.
Edison Energy's European branch, Altenex, played a crucial role by providing technical expertise to support Merck in this endeavor. Notably, Edison Energy facilitated similar power purchase agreements in 2022 for Bristol Myers Squibb and Takeda Pharmaceutical Company, securing access to 60MW of solar power and 79MW of wind power in North America, respectively.
Hannah Badrei, Senior Vice President of Global Energy Advisory at Edison Energy, commented on the significance of these corporate initiatives, stating, “By purchasing zero-carbon renewable energy, these corporations can help achieve our shared goal of a more sustainable future. Partnerships such as this mark a significant step towards a greener future for the pharmaceutical sector, and we are proud to be at the forefront of this global decarbonization movement.”
