Industrial gas major Air Liquide has signed a long-term power purchase agreement (PPA) with Spanish electric utility Iberdrola to power projects in Spain and Portugal.
The deal is a way for the company to secure access renewable energy when in becomes available.
This PPA will support the supply of industrial and medical gases, so likely powering air separations units and perhaps more.
Iberdrola manages long-term PPAs in Spain, Portugal, Germany, Italy, the UK, the US, Brazil, Mexico and Australia. It supplies renewable energy from wind and solar projects.
Air Liquide’s most recent sustainability report captures its progress with accessing renewable electricity. In 2023 grew its renewables access to 2,600 GWh, though with 60% via PPAs the timelines for delivery are unclear.
In 2024, Air Liquide signed a further 2,500 gigawatt hours (GWh) of PPAs. Once onstream, this would cut over 1.2 million tonnes of carbon dioxide (CO2) annually.
Last year, Air Liquide also signed its first-ever virtual PPA.
In a physical PPA, the purchasing company commits to buying a specific amount of renewable energy generated by a project. The electricity is delivered to the grid, and the company can either consume it or sell it back to the market.
Virtual PPAs, also known as financial PPAs, don’t involve physical electricity delivery. Instead, the purchasing company commits to buying renewable energy certificates (RECs) or guarantees of origin (GOs) associated with the renewable energy project.
This lets the company claim the environmental attributes of the purchased renewable energy, even if the electricity doesn’t flow to their facilities.
