Avantor® Joins Pharmaceutical Industry-Sponsored Energize Virtual Power Purchase Agreement

Rhea-AI Summary

Avantor (NYSE: AVTR) has entered into a 10-year virtual power purchase agreement through the Energize program, aimed at increasing renewable energy access for pharmaceutical supply chains. This agreement will provide 25GWh of renewable energy annually starting in 2026, reducing Avantor's greenhouse gas emissions by 17,465 metric tons, equivalent to the energy consumption of 2,278 households for one year. Avantor is also developing three new solar projects in Spain to support its European operations. Additionally, the company has completed solar installations in Singapore, India, Sweden, and New York, with more planned in New Jersey and other locations to meet its 2030 emissions reduction targets.

Positive

• 10-year virtual power purchase agreement provides 25GWh of renewable energy annually starting in 2026.
• Reduction of 17,465 metric tons of CO2 emissions, equivalent to the energy consumption of 2,278 households for one year.
• Development of three new solar projects in Spain to support European operations.
• Completed solar installations in Singapore, India, Sweden, and New York, with more planned in New Jersey.

Negative

• None.

Insights

Environmental Sustainability Expert

Avantor's participation in the Energize virtual power purchase agreement (VPPA) marks a significant step towards sustainability in the pharmaceutical supply chain. The 10-year agreement, set to begin in 2026, will provide 25GWh of renewable energy annually, equivalent to powering 2,278 households for a year. This move aligns with the growing trend of corporations taking proactive measures to reduce their carbon footprint.

The company's commitment extends beyond the VPPA, with ongoing solar installations across global locations and plans for more in 2025. This multi-faceted approach to renewable energy adoption demonstrates a comprehensive strategy to meet their 2030 emissions reduction targets.

From an investor perspective, this initiative could potentially:

• Enhance Avantor's reputation as an environmentally responsible company
• Mitigate future risks associated with carbon pricing and regulations
• Potentially reduce long-term energy costs, improving operational efficiency
• Attract ESG-focused investors and improve sustainability ratings

While the immediate financial impact may be , the long-term benefits in terms of risk management and market positioning could be substantial for Avantor in an increasingly sustainability-conscious business environment.

Reflects Growing Commitment to Renewable Energy Sources

• Energize virtual power purchase agreement will provide the equivalent of 25GWh of renewable energy annually beginning in 2026
• Avantor continues to implement global solar installations, with more planned in 2025

RADNOR, Pa., Sept. 25, 2024 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technologies industries, has entered into a 10-year virtual power purchase agreement through the Energize program, a first of its kind initiative to increase access to renewable energy for pharmaceutical supply chains.

"This partnership reflects Avantor's continued commitment to reducing our greenhouse gas footprint while supporting the pharmaceutical industry in its quest to build a more sustainable supply chain infrastructure," said Michael Stubblefield, Avantor President and CEO. "The Energize virtual power purchase agreement is not only an important step in our long-term decarbonization strategy, but it also lowers the cost to power our supply chain."

As a participant in the first cohort to come out of the Energize Program, Avantor is supporting the development of three new solar projects in Spain, which will deliver new renewable electricity capacity to the European market. Expected to come online in 2026, the project will cover Avantor's European operations with 25GWh of renewable energy annually for 10 years. This represents an estimated 17,465 metric tons of CO2 avoided, or the equivalent of 2,278 households' annual energy consumption for one year*.  

The Energize Program is just one way in which Avantor is investing in renewable energy. The company recently completed solar array installations at sites in Singapore, India, Sweden, and upstate New York, with two more locations in New Jersey expected to be completed this year. These are part of a pipeline of additional on-site solar projects in North America, Europe and Asia designed to help the Company meet its 2030 emissions reduction targets.

Read more about Avantor's solar projects in Singapore, India and New York here.

*Source: EPA Greenhouse Gas Emissions Equivalency Calculator

About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedIn, X (Twitter) and Facebook.

About Energize
The Energize program is a supply chain renewables initiative designed and delivered by Schneider Electric Sustainability Business and endorsed by the Pharmaceutical Supply Chain Initiative (PSCI).

Current Energize sponsor companies include: Almirall, Amgen, AstraZeneca, Bayer, Boehringer Ingelheim, Bristol Myers Squibb, Charles River Laboratories, Chiesi Group, GSK, Haleon, Johnson & Johnson, Kenvue, Merck (known as MSD outside the United States and Canada), Merck KGaA, Darmstadt, Germany, Novartis, Novo Nordisk, Pfizer, Roche, Sandoz, Sanofi, Schott, Takeda, Teva, and UCB.

Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@avantorsciences.com

Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
805-617-5297
Christina.Jones@avantorsciences.com

View original content:https://www.prnewswire.com/news-releases/avantor-joins-pharmaceutical-industry-sponsored-energize-virtual-power-purchase-agreement-302257759.html

SOURCE Avantor and Financial News

FAQ

What is the virtual power purchase agreement Avantor entered into?

Avantor entered into a 10-year virtual power purchase agreement through the Energize program to provide 25GWh of renewable energy annually starting in 2026.

How much CO2 emissions will Avantor's new agreement reduce?

The agreement will reduce Avantor's CO2 emissions by 17,465 metric tons annually, equivalent to the energy consumption of 2,278 households for one year.

What new solar projects is Avantor developing as part of the Energize program?

Avantor is developing three new solar projects in Spain to support its European operations, expected to come online in 2026.

What are Avantor's recent solar installation sites?

Avantor recently completed solar installations in Singapore, India, Sweden, and New York, with more planned in New Jersey.