AGRANA: achieving cost and carbon savings with a PPA
Case study overview
In 2019, AGRANA signed a combined wind and solar Power Purchase Agreement (PPA) with wholesale electricity price access, to help cut costs and work towards ambitious sustainability targets.
Since then, it has actively participated in the Australian Energy Market Operator’s (AEMO) Reliability and Emergency Reserve Trader (RERT) program.
AGRANA manufactures fruit-based products on the Central Coast of NSW, with a focus on delivering quality products, sustainably.
In 2019, AGRANA signed a Power Purchase Agreement, or PPA, matching over 75% of its energy demand with a mix of solar and wind generation, from Bomen Solar Farm and Sapphire Wind Farm.
Switching to a PPA and participating in RERT, has helped AGRANA reduce the cost of its energy by 10%. The site is also able to use its onsite backup generators to lower energy bills through other value streams, such as the RERT scheme, helping reduce strain on our shared electricity grid during periods of extreme demand.
AGRANA’s sustainability targets
- Reduce energy consumption by 5% in its operations by maximising the efficiency of its processes and preserving resources by 2025
- Achieve carbon neutrality across its operations by 2040
- Achieve carbon neutrality across its entire value chain by 2050
AGRANA has made a goal to reduce its carbon footprint, water consumption and waste, to protect and enhance biodiversity and soil health.
By matching its demand with renewable energy, AGRANA is reducing its carbon footprint and working towards a more sustainable future.
Signing a renewable energy PPA helps AGRANA work towards its target of decarbonisation by 2050.
In 2019, AGRANA had already purchased renewable generation to match 7% of its use, with the majority of this coming from onsite biogas or biomass. AGRANA expects that this could increase by a further 11%.
AGRANA’s electricity costs dropped by 10% in 2019, compared to 2018.
This financial benefit is mainly attributed by switching to a PPA, as energy use remained consistent during this period.
AGRANA is an active participant in the ARENA/AEMO RERT program.
Under the RERT program, AGRANA responds a few times per year to certain market events, where there isn’t enough electricity to meet demand, by disconnecting from the grid and switching on its generators.
Click here to learn more about Reliability and Emergency Reserve Trader (RERT).
As part of its energy contract, AGRANA has two Power Purchase Agreements.
Through these agreements, it is linked to two of Flow Power’s offtake partner projects; Sapphire Wind Farm and Bomen Solar Farm.
These projects help to support local communities, create new employment opportunities and work towards our shared goal of building the renewable future.
AGRANA’s global head office has committed to CO2-neutral production by 2040 and developed a concrete Decarbonisation Strategy by 2050.
AGRANA’s sustainability reporting, which is GRI accredited, has been integrated with its Annual Reports since 2012.
It has also developed new sustainability targets for its fruit business in 2019/20 following a stakeholder survey, which ranked “energy consumption and emissions” as its highest environmental, social and economic impact.
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