Renewables

World’s leading pharmaceutical, healthcare companies ink PPA within Schneider Electric’s Energize initiative

Schneider Electric Energize pharmaceutical healthcare companies PPA

Photo: Schneider Electric

Published

February 14, 2025

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Published:

February 14, 2025

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Schneider Electric’s Energize, a collaborative partnership among the world’s leading pharmaceutical and healthcare companies and their suppliers, has facilitated the signing of the second PPA cohort for joint procurement of renewable electricity, following the success of the first cohort announced in fall 2024.

Energize, an initiative created and managed by Schneider Electric, aims to accelerate renewable energy adoption within the pharmaceutical value chain. Twenty four leading pharmaceutical and healthcare companies sponsor the Energize program to provide renewable electricity education and procurement support at no cost to their suppliers. The support empowers suppliers to make tangible strides toward achieving decarbonization goals.

The largest estimated emissions driver for the pharmaceutical and healthcare sector is the supply chain, which accounts for over 50% of emissions.

The first PPA was successful, evident by the creation of new cohorts for PPAs for long-term supply of renewable electricity, according to Schneider Electric.

The second PPA was signed by Energize sponsors Haleon and GSK and industry suppliers Gilead Sciences and Thermo Fisher Scientific

Current sponsor companies include: Almirall, Amgen, AstraZeneca, Bayer, Boehringer Ingelheim, Bristol Myers Squibb, Charles River Laboratories, Chiesi Group, GSK, Haleon, Johnson & Johnson, Kenvue, Merck (known as MSD outside the United States and Canada), Merck KGaA, Darmstadt, Germany, Novartis, Novo Nordisk, Pfizer, Roche, Sandoz, Sanofi, Schott, Takeda, Teva, and UCB.

“The Energize program aims to drive supply chain carbonization across the pharmaceutical and healthcare industries while serving as a playbook for other sectors as they look to tackle the most notoriously challenging aspects of decarbonization – scope 3 emissions,” said John Powers, Vice President of Schneider Electric responsible for the Global Renewable segment.

Schneider Electric’s Sustainability Business served as the advisor to the four companies participating in the second cohort throughout the PPA procurement and negotiation process.

The electricity for both PPAs will be produced in solar power plants

Energize sponsors Haleon and GSK and industry suppliers Gilead Sciences and Thermo Fisher Scientific signed the multi-buyer PPA with developer X-ELIO. The electricity will be produced in its Lorca Solar facility, expected to become operational by early 2026.

The four companies have collaborated to execute an aggregated purchase of 245 GWh of renewable energy per year for a 10-year term. The deal avoids 41,748 metric tons of CO2 emissions per year. The annual volume is equivalent to 74,878 Spanish households’ average electricity consumption.

“The signing of this virtual PPA reaffirms our commitment to offer personalized net zero solutions adapted to the needs of our partners,” said Mirko Molinari, Chief Commercial Officer at X-ELIO.

The first PPA was signed by three sponsors and five suppliers, for 563.7 GWh of renewable electricity per year for a 10-year term. The photovoltaic plant is developed by companies Zelestra and Bruc.

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