EssilorLuxottica and ERG sign a long-term Corporate PPA agreement in Italy for the supply of electricity produced from renewable sources
Charenton-le-Pont, France and Genoa, Italy (9 March 2023) – EssilorLuxottica, a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, and ERG, a leading European producer of energy from renewable sources through its subsidiary ERG Power Generation, announced today that they have signed a twelve-year Power Purchase Agreement (PPA) for the supply of approximately 900 GWh of green energy between 2023-2034.
The agreement is based on the sale by ERG of approximately 75% of the energy produced by its Partinico-Monreale wind farm near Palermo, Italy, the first in the Group's portfolio to complete repowering activities. Following the replacement of the entire facility with latest generation equipment, the wind farm will consist of 10 turbines of 4.2 MW with a total installed power of 42 MW (compared to the previous 19 turbines for a 16 MW installed power) and an estimated annual production of 94GWh (compared to the current 27 GWh). The wind farm is in an advanced stage of construction and will come into operation during the second quarter of 2023.
For EssilorLuxottica, this agreement marks an important step towards its objective of becoming carbon neutral in its direct operations (Scope 1 and 2 emissions) by 2025, starting with Europe by the end of the year, as outlined in its “Eyes on the Planet” Sustainability program.
Francesco Milleri, Chairman and CEO of EssilorLuxottica commented: “At EssilorLuxottica we envision a better, cleaner future where our planet and people can thrive. As a sign of our long-term commitment in this area, we are proud to announce this strategic partnership with ERG supporting our goal to become carbon neutral in our direct operations and to reduce the impact of our value chain. Through Eyes on the Planet, we are contributing to the global agenda of tackling climate change and protecting our planet for generations to come”.
Paolo Merli, Chief Executive Officer of ERG commented: “We are pleased with this agreement, a partnership between two leaders of the Italian industrial context committed to contributing to the decarbonization process through the development and use of renewable energy. The agreement allows us to maximize the value of our first Repowering project in Italy through energy sales mechanisms capable of stabilizing revenues, which are even more important given the current strong volatility scenario”.