3 minute read 27 Jan 2022
ey-worker-in-food-manufacturing-factory

How a future-focussed food manufacturer flicked the switch on renewable energy

By Blair Comley PSM

EY Net Zero Centre Leader and Partner, EY Port Jackson Partners

Where government meets markets. I have helped design and negotiate the biggest policy changes in Australia and the world. Golf tragic. Chef (or maybe cook).

3 minute read 27 Jan 2022

EY evaluated a range of renewable energy options for this food manufacturer to find a solution that would reduce emissions and energy costs.

Overview

Our diets have a huge impact on climate change as food production is responsible for more than a third of global greenhouse gas emissions. But one leading food manufacturer is a step closer to net zero, thanks to a renewable power purchase agreement inked with the help of EY professionals.

Action

Locking in a renewable electricity price through a power purchase agreement, or PPA, can save money, reduce uncertainty and boost a company’s sustainability credentials.

But not all PPAs are equal, which is why we helped our client investigate and understand all the contracting options that could reduce operational emissions and energy costs while supporting future growth.

The EY Team, with experienced climate change knowledge and deep knowledge in finance, legal, reporting, transactions and strategy, evaluated a range of possible PPAs to find the optimal solution and structured the commercial negotiations to secure a successful result.

Outcomes

With the EY team’s help, our client now powers its factory and head office with 100% renewable energy. This commitment delivers real-world results, saving millions of dollars in electricity costs and eliminating an estimated 139,000 tonnes of emissions over the next seven years alone. To achieve the same emissions abatement, our client would need to plant 2.3 million trees or remove 30,000 cars from the road. What’s more, this climate leader has reinforced its corporate social responsibility credentials in the market.

Summary

Power purchase agreement (PPAs) are a great way to boost a company’s sustainability credentials but not all are created equal, and can create uncertainty for organisations. With the EY team’s help our client was able to secure the optimal PPA solution and now power their head office and factory with 100% renewable energy.