Huhtamaki signs a virtual power purchase agreement in the US

Marking a major step in its ambition to use 100% renewable electricity by 2030

February 28, 2022

128

Huhtamaki, the global provider of sustainable packaging solutions, has signed a 12-year Virtual Power Purchase Agreement (VPPA) with a subsidiary of NextEra Energy Resources, NextEra 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 US 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 chief executive officer 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 US.

“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 a 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.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now

As 2023 begins and FY 23-24 unfolds, will you support us?

What lies in store for the packaging industry in India and South Asia this coming year? Inflation, disruption of supply chains or environmental regulation? Or the resumption of high rural demand, continued investment and industry consolidation? Whatever happens, Packaging South Asia will be there, providing clarity and independent technical and business information in India and South Asia and around the world. We are a compact Indian organization bringing a window of fair and rigorous technical and business information that the industry can access this year and beyond. Please support us with your advertising and subscriptions, to keep us going and growing.

Thank you.