Power purchase agreements are rising in Italy as manufacturers lock in energy costs and secure green power
[MILAN] Shell has signed a long-term deal to supply Ferrari with renewable energy until the end of 2034 to help the luxury carmaker to reduce carbon emissions, the oil and gas group said on Tuesday (Nov 25).
Such power purchase agreements – long-term contracts under which a company buys electricity directly from a producer – have become more common in Italy in recent years as a way for manufacturers to lock in energy costs and secure green power.
In this case, Shell will supply a total of 650 gigawatt hours of power over 10 years from a plant developed by the oil and gas group.
That will cover nearly half of the total energy needs of Ferrari’s Maranello plant near Modena, helping to decarbonise the carmaker’s production.
Shell Energy Italia will also provide additional power and renewable energy certificates to cover Ferrari’s entire needs in Italy.
The deal is expected to result in a significant cut to Ferrari’s Scope one and two emissions – those generated directly by its operations and from purchased energy – as the luxury carmaker targets a 90 per cent reduction in absolute terms by 2030.
“We are proud to further strengthen our partnership with Ferrari through the signing of this important … agreement,” Gianluca Formenti, CEO of Shell Energy Italia, said in a statement.
London-listed Shell is already a partner of Scuderia Ferrari, the luxury carmaker’s racing team. REUTERS
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