Huhtamaki signs a Virtual Power Purchase Agreement in the United States

HELSINKI, Feb. 24, 2022 /PRNewswire/ -- Huhtamaki, a key global provider of sustainable packaging solutions, has signed a 12-year Virtual Power Purchase Agreement (VPPA) with a subsidiary of NextEra Energy Resources, LLC. NextEra Energy Resources is the world's largest generator of renewable energy from the wind and sun. The 42-megawatt agreement for renewable energy covers approximately 30% of Huhtamaki operations' current electricity demands in the United States and Mexico, where the company has 18 manufacturing units.

"We believe in protecting food, people and the planet. This agreement marks an important milestone on our journey towards delivering on our ambitious 2030 sustainability agenda. The agreement builds on the European VPPA agreement announced late in 2021, which covers 80% of our European electricity usage", says Thomas Guest, Deputy CEO of Huhtamaki. 

The renewable energy covered by the agreement will be sourced from a subsidiary of NextEra Energy Resources' Inertia Wind Energy Center in the Electricity Reliability Council of Texas (ERCOT) North Zone, in Texas. The approximately 300-megawatt project is expected to be operational by the end of 2022 and to save more than 71,000 tons of CO₂ emissions annually, equivalent to the average electricity usage of more than 12,000 homes in the United States.*

"We applaud Huhtamaki's commitment to sustainability and are pleased to be able to support the company's renewable energy goals. This will also create significant economic stimulus for the local community, creating good jobs and additional tax revenue", says Matt Handel, Senior Vice President of Development for NextEra Energy Resources. 

"We have already taken a series of pioneering steps on our journey to a sustainable future, with the intent to reach carbon-neutral production by 2030 while optimizing usage of resources, including energy, water, and waste. The VPPA enables us to make a significant leap forward in delivering on our ambitious sustainability agenda and scope 2 emissions reduction target in line with our science-based targets. It also contributes to adding more green electricity into the U.S. energy mix", says Thomasine Kamerling EVP Sustainability and Communications.

Huhtamaki's science-based targets were validated and approved by the Science-Based Targets initiative in 2021. The company is committed to limiting the global temperature rise to well below 2°C in its operations and value chain. It will reduce its electricity greenhouse gas emissions by 27.5% by 2030 and greenhouse gas emissions from its product end-of-life by 13.5% also by the same timeframe. To achieve these targets, the company has to address its Scope 1, 2 and 3 emissions. Currently, a large portion of Huhtamaki's Scope 2 emissions relate to purchased electricity and can thus be addressed with further adoption of renewable electricity.

*Reference: www.epa.gov

Global: Arto Gröndahl, Media Relations Manager, tel. +358 (0)10 686 7107
North America: Wess Hudelson, Communications Manager, tel. +1 913-583-8268

HUHTAMÄKI OYJ
Global Communications

Notes to editors

A Virtual Power Purchase Agreement (VPPA) is a contract structure in which a power buyer (or off taker) agrees to purchase a project's renewable energy for a pre-agreed price. In this agreement, the utility-scale solar project receives the market price at the time the energy is sold. Source: https://bit.ly/3F3BMxh

Huhtamaki signed the first Virtual Power Purchase Agreements (VPPA) with BayWa r.e., a global renewable energy developer in December 2021. The agreements form the largest solar VPPA for the packaging industry in Europe, as well as the first major solar VPPA by a Finnish company. The 200 GWh agreements cover approximately 80% of the company's current electricity usage in Europe, where it has 18 manufacturing sites in 10 countries. Find out more https://bit.ly/3H3UqVQ 

About Huhtamaki

Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, enabling wellbeing and convenience. Our innovative products protect on-the-go and on-the-shelf food and beverages, ensuring hygiene and safety, and help prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030.

We are a participant in the UN Global Compact and EcoVadis has awarded Huhtamaki with the Gold medal for performance in sustainability. To play our part in managing climate change, we have set science-based targets that have been approved and validated by the Science Based Targets initiative.

With 100 years of history and a strong Nordic heritage we operate in 38 countries and 114 operating locations around the world. Our values Care Dare Deliver guide our decisions and help our team of 19,600 employees make a difference where it matters. Our 2021 net sales totaled EUR 3.6 billion. Huhtamaki Group is headquartered in Espoo, Finland and our parent company, Huhtamäki Oyj, is listed on Nasdaq Helsinki Ltd. Find out more about how we are protecting food, people and the planet at www.huhtamaki.com.

SOURCE Huhtamaki Oyj