Farmer-owned dairy co-op Arla Foods says it is now covering its entire electricity consumption across its European sites with renewables.
Around 93% of the co-op’s total electricity consumption sits within Europe where it operates 46 sites in seven different countries.
“This is a great achievement for our co-operative and the result of years of hard work and dedication by the teams involved,” said David Boulanger, executive vice-president of supply chain. “We are constantly looking to make our supply chain more sustainable and securing that we now run on 100% renewable electricity is a big feat and something we are proud of – especially as it comes from long-term agreements connected to concrete projects creating additional access to renewable electricity in the EU and the UK.”
The renewable energy consists of a fairly even split between open-market certificates and long-term power purchase agreements (PPAs). Arla has entered into several PPAs in recent years to secure access to electricity powered by wind and solar.
By committing to offtake the electricity for a longer range of years, Arla says it is “actively contributing to the green transition in an area widely impacted by shifting political support”.
Boulanger added: “Energy companies often need the extra security of a guaranteed consumer before committing to a large investment in renewable energy such as a wind or solar park. They seek partners like us who are capable of purchasing their electricity at a viable price – and not just for a couple of years but for the long term.
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“We have signed long-term PPA’s showing our continuous commitment to producing dairy as sustainable as possible now and in the future.”
The PPAs include a 44 GWh/year agreement from solar and wind power plants in Pronsfeld, Germany, near Arla’ biggest dairy, two solar plants in Lincolnshire and Kent (pictured) in the UK generating a combined 20 GWh/year, 43 GWh/year from a solar park in Denmark and 90 GWh/year from the largest solar PPA in Sweden’s history.
The rest of the energy is covered by certificates of which a small part is purchased directly from Arla farmers for electricity generated at their farms, using wind turbines and other methods. This ensures them the best price possible for their certificates, says Arla.
Arla added that it has also invested heavily in electrifying its supply chain and moving away from fossil fuels. With massive projects in Denmark, Germany and the UK, almost 30% of the company’s total energy use is now electricity, and this is set to rise in the coming year.
“While reducing energy consumption will always be our first priority, electrifying our supply chain is also an important driver to future-proofing and decarbonise our operations,” added Boulanger. “Not only does it make us less dependent on fossil energy sources and vulnerable to geopolitical and market volatility, it contributes heavily to our supply chain sustainability agenda and even more so now that we use 100 per cent renewable electricity, says David Boulanger.”
Arla Foods said it is now exploring further how to increase its share of renewable electricity for its sites outside of Europe.
