Iberdrola to provide construction firm with renewable energy from windfarm

Spanish energy giant Iberdrola and building solutions firm Holcim have signed a power purchase agreement for 250GWh of renewable energy per year.

Iberdrola will supply the energy from its 476MW Baltic Eagle offshore wind farm, north of the island of Rügen, Germany. The project is currently under construction and will be completed in 2024.

The agreement will help Holcim decarbonise operations and meet its goal of using 80% renewable energy by 2030.

As part of a wider agreement, the two companies also have established a working group to analyse the possibility of rolling out additional sustainability projects. These include further PPAs, as well as the development of on-site solar and green hydrogen projects at Holcim plants.

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According to Iberdrola, the working group is also analysing projects that could help to increase the electrification of existing industrial processes and boost electric mobility solutions.

Rodrigo Martin Flores, head of Infrastructure & Key Account Management at Holcim, said: "The transition to net-zero requires a deep collaboration across our entire value chain. No organization can do it alone."

Aitor Moso, director of Iberdrola's Retail Business, said: “Our agreement will see clean energy from offshore wind supporting Holcim operations immediately, and both companies want to expand our sustainable partnership much further in the weeks, months, and years ahead.

“To get to a net zero world, every company and every sector needs to innovate and have a clear and achievable strategy to reduce emissions. Creative partnerships, such as the one we have established with Holcim, will bring together the best ideas from different sectors and help to accelerate the journey to net zero.”

According to the United Nations Environment Program, the built environment accounts for 37% of gross annual carbon emissions worldwide.

The World Economic Forum recommends addressing three main roadblocks to ensure the decarbonisation of the construction industry, including; ensuring collaboration between all project stakeholders, promoting standard definitions and benchmarks for net-zero buildings across the construction industry and implementing government subsidies to spur sustainability.