CLH signs a long-term renewable energy PPA with Axpo Iberia
- The agreement enables CLH to progress with its sustainability strategy to achieve zero emissions by 2050
- The term of the agreement is 10 years and it represents 20% of the company’s energy consumption
CLH and Axpo Iberia have signed a renewable energy PPA for the next 10 years, as part of the company’s sustainability strategy aimed at reducing CO2 emissions by 50% by 2025 and becoming a zero-emissions company by 2050, in line with the Paris Agreement of December 2015 (COP 21) and sustainable development objectives (SDO).
Jorge Lanza, CLH’s CEO, pointed out that “the agreement allows us to guarantee the supply of energy that is 100% renewable. It equals 20% of the total electricity consumption in CLH, which is our main source of emissions, thus preventing the release of over 13.6k tonnes of CO2 into the atmosphere every year”.
Axpo offers a wide range of solutions for long-term energy management adapted to its customers’ requirements and to market conditions. In this regard, Ignacio Soneira, General Manager of Axpo Iberia, highlighted that this a highly beneficial transaction for both parties, as “CLH is guaranteed a highly competitive fixed price for a period of 10 years, during which it will obtain all guarantees with regard to source, thus contributing to compliance with sustainability requirements; and for Axpo, it represents the consolidation of a new line of business that will reinforce our position in the market over the long term, thus facilitating the sustainable growth of the business”.
In addition to the signing of this agreement for the purchase of renewable energy, CLH continues to work on the reduction of energy consumption by replacing its equipment with more efficient devices and incorporating new technological developments, thus enabling the reduction of emissions.
Furthermore, CLH is considering other alternatives to progress on emission reduction, such as self-generation of electricity with renewable energy sources and the adoption of offset measures aimed at achieving a neutral carbon contribution by 2050, based on its sustainability strategy.
CLH’s sustainability strategy also includes other specific plans and projects to strengthen its commitment to biodiversity protection, an efficient use of natural resources and the fight against climate change, as well as cooperating with the oil industry in the development of eco-fuels.
Along these lines, CLH recently reached an agreement with the Spanish Oil Operators’ Association (AOP) to promote the development of low-carbon liquid fuels and contribute to the decarbonisation of the sector. It also participates in two projects consisting of the promotion of the use of hydrogen and the recycling of plastic waste to produce liquid fuel.
About the CLH Group
The CLH Group is the leading company engaged in the transport and storage of oil products in the Spanish market and the second largest logistics operator in Europe in terms of the extension of its pipeline network and storage capacity.
In Spain, it has a pipeline network of over 4,000 kilometres in length and 39 terminals with capacity for 8 million cubic metres, as well as being present at the main Spanish airports. At the international level, the company is developing an ambitious expansion plan, and is now present in the UK, Oman, Ireland, Panama and Ecuador.
The Axpo Group reliably produces, markets and distributes energy in Switzerland and another 30 countries in Europe, and, more recently, in the USA. With 5,000 employees, it combines over 100 years of experience in the production of environmentally-friendly energy and innovation for a sustainable energy future. Axpo is a world leader in energy trading (recently named ‘Best Power Trader in the World’ in the prestigious ranking published by the magazine “Energy Risk”) and in the development of tailored solutions for its customers.
Axpo Iberia S.L.U. offers a wide range of products and services in Spain and Portugal, including power supply and electricity, gas, biomass and CO2 trading. With a power supply to industrial customers of around 5TWh a year and gas supply for a volume of over 1 bcm, Axpo Iberia also manages the main independent portfolio of renewable energy plants in the Iberian Peninsula.