Saint-Gobain signs first renewable energy deals

London – Saint-Gobain UK & Ireland has recenty signed its first renewable energy power purchase agreements (PPAs) with three anaerobic digestion plant operators; Biomass Future Generation Ltd, Katharos Organic Ltd and Trinity Hall Biogas Ltd.

These will each initially be three year deals - arranged by Saint-Gobain’s existing electricity provider SmartestEnergy Ltd - and Saint-Gobain has committed to buy the entire electrical output of all three anaerobic digestion plants, supporting the development of this renewable technology in the UK.

SmartestEnergy, a UK purchaser of independently generated electricity, facilitated the PPAs, while Triple Point Investment Management LLP is the private equity backer to each of the plants.

The three AD plants will generate energy from the breakdown of bio-degradable materials by micro-organisms; and the development of these plants was managed by Hallwick Energy Ltd, a specialist adviser and developer in the anaerobic digestion industry.

These deals will ensure around 10% of Saint-Gobain’s annual electricity demand - around 3MW - comes from renewable energy sources, the company said.

“Although they deliver no immediate financial benefits for Saint-Gobain, they do enable us to buy energy competitively on a medium-term basis,” said Simon Cotterell, said purchasing director for Saint-Gobain UK, Ireland & South Africa.

The agreements, he added, are a major step forward in Saint-Gobain’s goal to find more responsible ways of carrying out its operations and minimising its environmental impact.

With regard to energy, Saint-Gobain is focussed on reducing energy consumption, decarbonsing its supply chain, securing supplies and buying competitively.

Reviewing progress already been made in this area, Cotterell said: “In 2011 alone, 26% of the power we used in the UK came from renewable sources. This deal will enable us to increase this percentage further with production starting in July 2012.

“As we have guaranteed pricing with the energy generators involved, our hope is that the deals will also give them confidence to invest further so that additional renewable energy can be generated for the National Grid.”