These PPAs, one in Europe and one in the USA, cover approximately one quarter of DSM’s current total annual electricity consumption. With these deals DSM is well positioned to outpace its target of achieving 75% of purchased electricity from renewable sources by 2030. In 2019, DSM purchased 50% of its electricity from renewable resources.
The PPA in Europe has been signed with EDPR, a global leader in the renewable energy sector and one of the world’s largest wind energy producers. DSM will source renewable electricity from one wind farm and two solar power plants in Spain with a total capacity of 76 MW. The other large PPA in the USA has been signed with Origis Energy, a global solar company, for a solar plant with a total capacity of 78 MW.
With these long-term agreements DSM enables the owners to secure financing for the construction of their new renewable energy parks and ensures additional renewable electricity capacity for the planet.
DSM is committed to sourcing 75% of its electricity from renewable resources by 2030 and, reaching 100% at the earliest possibility. DSM is a member of the RE100 initiative led by The Climate Group in partnership with CDP. RE100 brings together the world’s most influential companies committed to 100% renewable power.
Dimitri de Vreeze, Co-CEO Royal DSM, commented: “Sustainability is not only DSM’s core value, it is also an important business driver that is fully engrained in our purpose, strategy, business and operations. I am proud that we are proactively delivering on our contribution to the Paris Agreement and that we continue to lead the way in our industry to move to a low carbon future.”
In addition to achieving this major milestone, other highlights of DSM’s commitment to Sustainable Development Goal (SDG) 7 (‘Affordable and Clean Energy’) and SDG 13 (‘Climate Action’) include:
- Powering 100% of its Netherlands operations with renewable electricity through agreements with windfarm Krammer, Bouwdokken and energy supplier Eneco since 2018.
- Realizing 69% renewable purchased electricity in the USA in 2019. The wind power agreement with NextEra Energy Resources in Minco, Oklahoma contributed 39% in 2019.
- Opening of solar parks in Belvidere (USA) in 2019, Pune (India) in 2014 and one of Switzerland’s largest and most efficient biomass power plants in Sisseln in 2019.
- Being the first European company in its sector with greenhouse gasses (GHG) reduction targets validated by the Science Based Targets initiative in 2019.
- Being one of the first companies to make the commitment to a long-term pathway toward net-zero GHG emissions across its operations and value chain by 2050 in 2019.
- Applying an internal carbon price €50 per ton of CO2 equivalents since 2015 – incorporating the cost of all GHG emission-based decisions that require significant capital expenditure.
- Engaging with multiple key suppliers to proactively reduce and report GHG emissions reductions related to the products supplied to DSM under its CO2REDUCE program since 2018.
- Joining the European Green Recovery alliance, a pan-European call for mobilization on post-COVID-19 crisis green investment packages in 2020.
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