Bayer inks PPA with Iberdrola's 105-MW wind farm in Mexico

Bayer de Mexico SA de CV, the Mexican unit of German pharmaceutical giant Bayer AG (ETR:BAYN), on Monday said it had signed a 15-year power purchase agreement (PPA) to get a supply of electricity from the Santiago wind farm in Mexico.

The 105-MW wind farm is owned by Spanish utility Iberdrola SA (BME:IBE) and is currently under construction in the state of Guanajuato. Once in operation, it will supply electricity to Bayer’s four plants in Mexico and 23 operation centres, located mainly in Sinaloa, Guanajuato, Jalisco and Chiapas, the pharmaceutical and life sciences company said.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

According to Iberdrola Mexico, the 105-MW wind farm will feature 50 turbines spread across the San Felipe municipality. It will be the seventh wind project that the Spanish utility’s branch built in Mexico.

Bayer Mexico’s PPA is part of a wider commitment to sustainability and the 2030 carbon neutrality target adopted by its German parent.

Bayer AG said Friday that the Science Based Targets initiative (SBTi) had determined that the company's climate protection targets were in line with the Paris Agreement. The company plans to contribute to limiting global warming to 1.5 degrees Celsius by cutting its own emissions by 42% by 2029.

As part of its climate ambitions, Bayer said it intends to buy electricity sourced only from renewables, adding that long-term arrangements laid out in PPAs are the most important tool to achieve this transition.