Sandoz has signed a decade-long virtual power purchase agreement (PPA) with Elawan Energy for the development of new solar projects in Valladolid, Castilla y León, Spain. The deal forms part of the pharmaceutical company’s decarbonisation strategy and is aimed at significantly reducing its operational carbon footprint.
The agreement will see the two companies collaborate on solar projects with a combined installed capacity of 150 megawatts, expected to supply nearly 90% of the electricity used across Sandoz’s European sites. Europe hosts the majority of the company’s operations.
Glenn Gerecke, Chief Manufacturing and Supply Officer at Sandoz, said the project underscored the firm’s environmental commitments. “By covering nearly 90% of electricity demand for our current European operations, we will reduce our environmental footprint and advance our commitment to a more sustainable future,” he said.
The initiative builds on similar PPAs for production sites worldwide and aligns with the company’s broader climate goals. In 2024, Sandoz submitted a commitment letter to the Science Based Targets initiative (SBTi), pledging to set science-based carbon reduction targets. It plans to present its full decarbonisation strategy to the SBTi for validation by January 2026.
