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EDF signs deals to help L’Oreal reach carbon neutrality targets by 2025
Global Banking & Finance Review®
Company
By Dina Kartit
(Reuters) -French power giant EDF said on Tuesday it signed two new electricity contracts with L’Oreal to help the France-based cosmetics maker achieve carbon neutrality for all its sites by 2025.
The contracts include the direct purchase by L’Oreal Group of electricity from renewable sources with EDF Renouvelables under a Corporate Power Purchase Agreement (C-PPA), from the production of two solar farms aggregated by EDF’s subsidiary Agregio.
They also include an electricity supply contract with EDF over 2024 and 2025 to supply L’Oréal’s production sites in France, including volume from the C-PPA.
The direct purchases cover the supply for 15 years of the entire production of two solar power plants to be built and operated by EDF Renewables, with a combined installed capacity of 27 megawatt-peak (MWp).
“With these contracts, L’Oréal Group will benefit from a controlled purchase price over the long term, will guarantee the renewable origin of the electricity thus purchased and will develop new capacities for its activities,” EDF said in a statement.
The first solar power plants should be operational by the third quarter of 2024 and the second by the second quarter of 2025, EDF said, adding they will produce about 25% of L’Oréal Group’s electricity consumption in France.
The signing of these two contracts adds up to the 5.3 GW of renewable PPAs signed by EDF worldwide since 2010, the energy company said.
(Reporting by Dina Kartit, edited by Tomasz Janowski and Emelia Sithole-Matarise)
Carbon neutrality refers to achieving net-zero carbon emissions by balancing emitted carbon with an equivalent amount of carbon removal or offsetting. This can be accomplished through renewable energy sources, energy efficiency, and carbon offset projects.
Renewable energy sources are energy sources that are naturally replenished, such as solar, wind, hydroelectric, and geothermal energy. These sources are considered more sustainable and environmentally friendly compared to fossil fuels.
A solar farm is a large-scale installation of solar panels designed to convert sunlight into electricity. These farms can provide renewable energy to the grid and support sustainability initiatives.
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