Iberdrola has signed a power purchase agreement (PPA) with pharmaceutical company Bayer for a 590MW solar project in Spain.

Under the 10-year agreement, the Spanish multinational electric utility company will deliver 100 % renewable electricity for the entire electricity requirements of the nine Bayer sites in Spain.

The PPA will cover Bayer’s three factories, five research and development (R&D) centres and its headquarters for Iberia.

According to Iberdrola, the agreement will be effective in 100 % of Bayer centres from 2022 and for a ten-year period.

Bayer corporate public affairs and sustainability communications director Laura Dieguez said: “Measures such as these help us to further Bayer’s commitment to sustainability by taking concrete steps to reduce our environmental impact.

“Working with experts such as Iberdrola makes this commitment effective almost immediately, while we contribute to develop the infrastructure Europe needs to build a greener and more environmentally friendly future.”

Francisco Pizarro project to supply renewable energy to Bayer facilities

The renewable energy to be supplied to Bayer facilities in Spain will come from the 590MW Francisco Pizarro solar project.

Currently, the photovoltaic (PV) plant is under planning consent in Europe.

The project, which has already received environmental impact assessment (EIA) approval, is located between the Extremaduran municipalities of Torrecillas de la Tiesa and Aldeacentenera (Cáceres).

Once operational in 2022, the Francisco Pizarro project is expected to generate enough clean energy to supply 375,000 people annually.

In addition, the solar facility is expected to prevent the emission of 245,000 tonnes of CO2 into the atmosphere each year.

In October, Iberdrola has formed a new alliance with Spanish fertilizer company Fertiberia to invest €1.8bn over seven years to install 800MW of green hydrogen production capacity in Spain.