Squeaky Clean Energy, the UKs leading PPA marketplace, has secured another first by closing an innovative PPA for Britvic, the FTSE 250 global soft drinks business, and Atrato Onsite Energy (Atrato), a leading solar energy provider.
The innovative 10-year Power Purchase Agreement (PPA), developed by Squeaky whose founders were early pioneers of corporate PPAs in the UK in 2008, enables Atrato to supply Britvic with solar electricity that is commercialised on a pay-as-you-generate basis but is delivered as a baseload contract that matches the consumption needs of the company and can be sleeved into Britvic’s existing supply arrangements.
Atrato’s new solar installation in Northamptonshire will generate energy exclusively for Britvic. It will have a total capacity of 28MW and will be capable of generating 33.3 GWh pa of clean energy, the equivalent of powering 11,500 homes or planting 260,000 trees. The electricity generated will be enough to power 75% of Britvic’s current operations in Great Britain, including its Beckton and Leeds factories, which can produce 2,000 recyclable bottles per minute.
The contractual framework provides the investment security needed by Atrato to build the new solar farm in an old quarry in Northamptonshire. This will see new additional renewable energy capacity developed supporting Squeaky’s mission to accelerate the world’s transition to clean energy. Atrato has fully financed the solar installation, which is expected to be commissioned in early 2024. In only 19 months since IPO, Atrato has built a portfolio of 40 solar sites across the UK.
Britvic has committed to achieving net zero carbon emissions by 2050 and has led the industry as the first UK soft drinks company to have a 1.5°C target verified by the Science Based Targets initiative. Britvic has demonstrated its commitment to this goal, having reduced its direct carbon emissions by 34% since 2017 and generated 57% of its energy needs from renewable sources in 2022, up from 28% in 2018 .
Chris Bowden, Managing Director of Squeaky Clean Energy said:
“Having pioneered the use of corporate PPAs in the UK it has become abundantly clear that new and innovative contracting structures are needed to accelerate the transition to clean energy. We are incredibly proud to have scored another first with a unique PPA arrangement that enables Atrato to de-risk the financing of its project and Britvic to deliver on its Healthier People, Healthier Planet sustainability mission.”
Matt Swindall, Chief Procurement Officer at Britvic says:
“This deal represents a significant milestone for Britvic as we continue to partner with home-grown renewable energy projects to power our business. The 10 year deal also establishes stability, enabling us to plan more efficiently over the coming years. In short, it’s great for our Healthier Planet sustainability ambitions, and great for the business.”
Matthew Philips, Britvic’s Senior Category Manager for utilities, led the project. He said:
“This is a ground-breaking achievement for Britvic, and I am extremely proud of everyone involved. Our Healthier People, Healthier Planet sustainability strategy is a critical commercial driver for us, and nothing demonstrates this more than our factories and warehouses being powered by clean, green, domestic renewable electricity to produce the iconic quality brands that consumers love.”
Gurpreet Gujral, Managing Director and Head of Renewable Energy at Atrato said:
“We are thrilled to enter into this new corporate PPA with Britvic. This highly innovative PPA structure provides Britvic with a consistent source of renewable energy that matches their electricity needs. This project exemplifies our commitment to providing long term and attractively priced clean energy to our clients. Following an award-winning IPO, Atrato has become the ‘go to’ corporate clean energy provider.”
Ross Fairley Head of Renewable Energy at Burges Salmon said:
“We are really pleased to have been asked by Atrato to advise on this corporate PPA. We have been involved in developing the different corporate PPA models from the early days and this is a further innovation which will help renewable generators and those corporates working towards Net Zero.”