Engie signed a 15-year power purchase agreement (PPA) in Mexico to supply renewable energy to steel producer Gerdau, and another 16-year PPA with Santiago de Chile airport operator, the French energy company announced Thursday.
"The Group is developing a 130-mewagatt (MW) photovoltaic plant in Sonora, northern Mexico composed of approximately 400,000 solar panels, which will provide Gerdau with a 100 percent clean and economic source of energy for its industrial processes," a statement read.
With the construction of this new solar farm in Mexico, set to start operations at the end of 2019, Engie will exceed 1,000 MW of renewable energy generation capacity in the country in operation or construction.
The group also signed a PPA with Santiago de Chile airport operator, Nuevo Pudahuel, to supply 100 percent certified renewable energy, which will reduce the airport's carbon dioxide emissions by 35,700 tons per year.
Under the 16-year agreement, Engie will supply the airport with 105 gigawatt-hours (GWh) per year of green electricity to meet all its power needs.
Pierre Chareyre, Engie's executive vice-president in charge of the business units Global Energy Management and Latin America, said Engie was "very proud" to be tapping into the nascent green corporate PPA market and to deliver clean energy directly to its customers.
"These two new agreements are fully aligned with the Group's strategic objective to pursue the development of renewable energy projects and to reinforce its presence in Latin America, a region with high growth perspectives," he added.
According to the statement, Engie's Latin America business unit is active in power generation and transmission, gas transportation and distribution, and energy supply and services.
"The group is currently accelerating the development of solar and wind renewable capacities and is committed to developing innovative energy solutions while strengthening its activities in distributed generation and green mobility," it said.
These two contracts follow other agreements Engie signed in Latin America in the last 12 months with companies in different markets including food, consumer goods, telecommunications, banking, services and construction.
"In this way, the Group advances in its strategy of increasing the availability of sustainable solutions that contribute to harmonious progress," it added.
By Hale Turkes