The deal, one of the first of its kind in Australia, allows Olam direct access to secure, cost effective energy with an expected significant reduction in costs over a period of 10 years. This renewable power, sourced from Ararat Wind Farm, can be used in real time to offset grid electricity consumption, potentially saving thousands of dollars in energy costs.
Olam’s Co-Founder and Group CEO, Sunny Verghese, comments:
We are proud to be one of the first businesses to sign a Corporate Renewable PPA in Australia. This is in line with our strategy to grow our renewable energy portfolio around the world, from solar panels for cocoa processing in Cote d’lvoire, to harnessing geothermal power for our onion dehydration plants in the USA.
These are just a few of our initiatives to tackle climate change as part of our purpose of ‘Re-imagining global agriculture’. In addition, this transaction also provides us energy cost visibility over the longer term.
Flow Power announced the availability of Renewable Corporate PPAs earlier this year, with a view to providing Australian businesses the ability to tap into a global trend that brings energy costs down and benefits both the environment and the economy.
Matthew van der Linden, Managing Director of Flow Power, comments,
Olam has been a customer of Flow Power for many years. We are very excited for them to be among the first to benefit from our new offering. Our Renewable Corporate PPAs open the market to a much broader range of businesses that don’t necessarily have the scale to negotiate one-to-one with large renewable plants.
It is a game changer that we expect will allow Australia to catch up with other international markets that have proven this model to be a success. He continued; By working with Flow Power, companies aim to get the benefit of low cost power in a way that works for their business.
Renewable Corporate PPAs allow businesses to contribute to a lower carbon economy and reduce overall emissions, as well as potentially save hundreds of thousands of dollars in energy costs.
Olam Orchards Australia Pty Ltd is a wholly owned subsidiary of leading global agribusiness, Olam International Limited (Olam).
Olam International is a leading agri-business operating across the value chain in 70 countries, supplying various products across 18 platforms to 23,000 customers worldwide. From a direct sourcing and processing presence in most major producing countries, Olam has built a global leadership position in many of its businesses. Headquartered in Singapore and listed on the SGX-ST, Olam currently ranks among the top 30 largest primary listed companies in Singapore in terms of market capitalisation. More information on Olam can be found at www.olamgroup.com.
Flow Power in the Australian Financial Review.
Read about our other customers who have also signed Corporate PPA’s here.