Healthcare company Novo Nordisk and bio-innovator Novozymes have signed a long-term power purchase agreement (PPA) to buy electricity from Vattenfall’s yet-to-be-built 600MW Kriegers Flak offshore wind project in the Danish part of the Baltic Sea.
The deal will cover approximately one-fifth of the plant’s production, the Swedish utility said.
Kriegers Flak is scheduled to be in full operation by the end of 2021. The agreement enters into force from 1 January, 2020. Between then and 2021, the power will be sourced from other Vattenfall wind farms in Denmark.
Vattenfall won the rights to build Kriegers Flak following a 2016 Danish government auction, after bidding what was then a record-low for the sector of €49.90/MWh ($58.00/MWh).
“We are experiencing an increasing demand from businesses to buy 100% renewable energy,” says Branislav Slavic, vice president of business sales Nordic at Vattenfall.
“This agreement is a result of that, and we are looking forward to cooperating with Novo Nordisk and Novozymes.”
Corporate PPAs are on the increase in Europe, particularly in Scandinavian countries and in the Netherlands, but haven’t reached volumes seen in North America, because in some of the major European markets, such as Germany, the regulatory framework for energy sales doesn’t favour corporate deals.
Kriegers Flak will be Denmark’s largest wind farm, featuring 72 Siemens Gamesa 8MW turbines with a rotor diameter of 167 metres.
According to Dorethe Nielsen, head of corporate environmental strategy from Novo Nordisk, an important element in the cooperation with Vattenfall is the ability to supply renewable energy for its international production sites.
“The agreement with Vattenfall moves Novo Nordisk one step closer to reaching our ambition: That all Novo Nordisk production facilities worldwide will run on renewable power by 2020. With the Vattenfall agreement all of Novo Nordisk European production will run on renewable power,” Nielsen said
All of Novozymes’ power consumption for production in Denmark has come from renewables for several years, and its entire supply of energy in Denmark will come from other sources than oil and coal. Lene Aabo, vice president for sourcing and facility management at Novozymes, sees the new agreement as a way to support sustainability in the whole value chain, from production to products.
Novo Nordisk and Novozymes are independent companies, but both part of the Novo group with the Novo Nordisk Foundation as a major shareholder through its holding company Novo Holdings.