DENMARK – Danish renewable energy developer Eurowind Energy has announced a new power purchase agreement with dairy cooperative Arla to supply green electricity from its wind and solar parks in Denmark.
According to Eurowind Energy, the 10-year deal will provide Arla with 60,000 MWh of renewable electricity annually, equivalent to the consumption of approximately 15,000 Danish households.
The power will be sourced from two upcoming projects, details of which were not disclosed in the announcement.
A report by Eurowind Energy indicated that this agreement follows a previous deal signed in 2022, under which Arla secured the entire electricity output from the repowered 39.6-MW Norre Okse So wind farm in Denmark.
Combined, these agreements will supply Arla with nearly 2 TWh of renewable electricity, advancing its target of operating entirely on green electricity by 2025.
In a statement reported by Arla, the cooperative emphasized its commitment to sustainability, with this latest agreement ensuring that its Danish operations will meet the 100% green electricity target by 2025.
The power purchase agreement, which took effect on January 1, 2025, will allow Arla to source energy from an unsubsidized wind farm in Jammerbugt Municipality.
The facility is part of a repowering initiative in which older turbines are being replaced with 11 modern turbines, that were made operational by November 2024.
The wind farm will generate 137 GWh of electricity annually, sufficient to power 34,000 Danish households.
Arla’s Sustainability Director, Hanne Søndergaard, reported that the agreement represents a major step toward the cooperative’s climate goals.
According to her, securing green electricity is a crucial part of ensuring that all products are manufactured sustainably.
She also highlighted that this initiative aligns with Arla’s broader strategy to reduce its carbon footprint across its production processes.
Over the duration of the 10-year contract, the green energy supplied by the wind farm is projected to reduce CO2 emissions by 58,000 tonnes annually, corresponding to 8% of Arla’s total scope 1 and 2 emissions.
In addition, Arla has stated that this initiative is one of several measures being implemented to transition its dairy and production plants to renewable energy sources.
Alongside wind power, the cooperative is incorporating solar energy, biogas engines, and other on-site renewable units from its dairy farms.
The use of renewable electricity supports Arla’s overall climate target of reducing production-related CO2 emissions by 63% before 2030.
Reports indicate that since 2015, Arla has already achieved a 25% reduction in emissions from its production activities.
Eurowind Energy CEO Jens Rasmussen has expressed satisfaction with the partnership, noting that Arla’s ambitious climate strategy sets an example for the industry.
He added that the agreement would enable the construction of another subsidy-free renewable energy plant and confirmed that Eurowind Energy plans to establish more agreements of this nature to accelerate the green transition
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