Ardagh Metal Packaging-Europe enters Portuguese renewable energy market, securing deal with BNZ

Rhea-AI Summary

Ardagh Metal Packaging-Europe (AMP-Europe) has signed a virtual Power Purchase Agreement (vPPA) with BNZ in Portugal, set to commence in 2026 for 12 years. This agreement will secure 146 GWh p.a. of renewable electricity certificates, expected to offset approximately 50% of AMP-Europe's continental energy consumption. Schneider Electric supported AMP-Europe in the project selection and vPPA negotiation.

This latest vPPA follows a solar energy agreement secured in Germany earlier this year with Sunnic Lighthouse GmbH. AMP-Europe aims to meet its target of 100% renewable electricity by 2030. The collaboration with BNZ aligns with AMP-Europe's commitment to accelerating a clean energy transition and marks a significant milestone in expanding their vPPA portfolio in Europe.

Positive

• Secures 146 GWh p.a. of renewable electricity certificates
• Offsets approximately 50% of AMP-Europe's continental energy consumption
• Expands vPPA portfolio in Europe
• Progresses towards 100% renewable electricity target by 2030

Negative

• None.

Insights

Sustainability Expert

This vPPA agreement marks a significant step in AMP-Europe's sustainability journey. Securing 146 GWh p.a. of renewable electricity certificates is expected to offset about 50% of their continental energy consumption. This aligns with the company's ambitious target of achieving 100% renewable electricity by 2030.

The partnership with BNZ in Portugal expands AMP-Europe's renewable energy portfolio, following their earlier solar energy agreement in Germany. This diversification across different renewable sources and geographical locations enhances the company's energy security and sustainability profile.

For investors, this move demonstrates AMP-Europe's commitment to reducing its carbon footprint and mitigating potential future risks associated with carbon pricing or stricter environmental regulations. It also positions the company favorably in terms of ESG criteria, which is increasingly important for institutional investors and could potentially lead to improved access to capital and enhanced brand reputation.

Energy Market Analyst

The 12-year duration of this vPPA provides AMP-Europe with long-term price stability for a significant portion of its energy needs, potentially shielding the company from volatile energy market prices. This could translate to more predictable operational costs, which is particularly valuable in the current global energy landscape.

Entering the Portuguese renewable energy market is a strategic move. Portugal has been making significant strides in renewable energy adoption, with favorable policies and abundant solar and wind resources. This diversification into a new market could provide AMP-Europe with valuable insights and potentially open doors for further expansion or partnerships in the region.

For investors, this deal represents a balanced approach to energy procurement, combining cost stability with sustainability goals. It's worth noting that while such agreements can provide long-term benefits, they may also limit flexibility if energy prices were to decrease significantly in the future.

AMP-Europe renewable energy PPA with BNZ

LUXEMBOURG, Oct. 16, 2024 /PRNewswire/ -- Ardagh Metal Packaging-Europe (AMP-Europe), an operating business of Ardagh Group, signed a virtual Power Purchase Agreement (vPPA) with BNZ in Portugal. This latest vPPA will commence in 2026 for 12 years and secure 146 GWh p.a. of renewable electricity certificates that is expected to offset approximately 50% of AMP-Europe's continental energy consumption. Schneider Electric, a leading adviser in corporate renewable energy procurement and carbon management, supported AMP-Europe in the project selection and vPPA negotiation.

This latest vPPA for AMP-Europe follows on from the solar energy agreement secured in Germany earlier this year with Sunnic Lighthouse GmbH. AMP-Europe will plan to continue to work with Schneider Electric on additional PPAs to enable AMP-Europe to meet its target of 100% renewable electricity by 2030.

David Spratt, CEO AMP-Europe said: "We are delighted to partner with organisations like BNZ that share our commitment to accelerating a clean energy transition. This vPPA marks a significant milestone in the expansion of our vPPA portfolio in Europe and is a major step towards AMP's CO₂ reduction and renewable electricity goals."

Luis Selva, Managing Director of BNZ, said: "Our collaboration with AMP-Europe demonstrates how a strategic alliance can have a significant positive impact for all parties involved. This vPPA not only strengthens our presence in Portugal, one of our key markets, but also contributes to our shared commitment with AMP-Europe to promote decarbonisation and move towards a more sustainable future."

"Making renewable energy more accessible to every organisation is a crucial part of meeting global emissions targets," said John Powers, Schneider Electric. "We thank AMP-Europe for their concerted efforts toward this endeavor. It has been a pleasure to collaborate along shared values and the promise of a sustainable future."

For more information About AMP's sustainability journey, click here.

Notes to the editor 

Ardagh Metal Packaging (AMP) is a leading global supplier of infinitely recyclable, sustainable, metal beverage cans and ends to brand owners. A subsidiary of sustainable packaging business Ardagh Group, AMP is a leading industry player across Europe and the Americas with innovative production capabilities. AMP operates 23 production facilities in Europe and the Americas, has approximately 6,300 employees and recorded revenues of $4.8 billion in 2023.

BNZ is an independent power producer (IPP) that designs, builds and operates solar PV projects, and has a portfolio of over 1.7 GW of European solar investments under development between Italy, Portugal and Spain with a clear objective: 100% renewable energy production to help our economy achieve a greener future. BNZ is a leader in the energy transition and is committed to the environmental and social progress of the local communities where the company installs its plants. Each of its projects is scrupulously designed to ensure that it goes one step further in ESG policies and in supporting biodiversity, acting ethically in all aspects of BNZ's business.
For more information, please visit: https://www.bnz.energy/

About Schneider Electric.

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SOURCE Ardagh Metal Packaging S.A.

FAQ

What is the duration of AMP-Europe's vPPA with BNZ in Portugal?

The virtual Power Purchase Agreement (vPPA) between Ardagh Metal Packaging-Europe and BNZ in Portugal is set to commence in 2026 for a duration of 12 years.

How much of AMP-Europe's energy consumption will the new vPPA offset?

The new vPPA is expected to offset approximately 50% of Ardagh Metal Packaging-Europe's continental energy consumption.

What is AMP-Europe's renewable electricity target and by when?

Ardagh Metal Packaging-Europe aims to achieve 100% renewable electricity by 2030.

Who supported AMP-Europe in the vPPA negotiation process?

Schneider Electric, a leading adviser in corporate renewable energy procurement and carbon management, supported AMP-Europe in the project selection and vPPA negotiation.