Neoen signs up corporate offtaker for Swedish wind farm

French renewables company Neoen SA (EPA:NEOEN) on Monday said it has signed a virtual power purchase agreement (PPA) for a large part of the output of its 57.4-MW Storbrannkullen wind farm in Sweden with European packaging company Coveris.

The 10-year PPA, sealed at the end of December, will see Coveris buy more than 60% of the wind farm’s power and associated guarantees of origin. The contract is partially indexed to market prices. Neoen will sell the balance of the wind park’s production on the Nordic electricity market.

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Located in the counties of Jamtland and Vasternorrland, the wind facility is due to come online in late 2023. Construction was initiated in July 2022.

The agreement with Coveris marks Neoen’s second corporate PPA in Sweden and comes shortly after the signing of Sweden’s largest solar PPA for the 90-MWp Hultsfred solar farm that will supply clothing retailer Hennes & Mauritz AB (STO:HM-B), or H&M.

The French firm said the deals reflect its ambition to become a leading player in the Swedish market. “We are stepping up the pace of development in Sweden in solar, wind and storage,” said regional director Europe Christophe Desplats-Redier.

The PPA supports Coveris’ sustainability strategy and will help the company achieve zero Scope 2 carbon dioxide (CO2) emissions.