Business power retailer Flow Power has entered into a large-scale Renewable Corporate Power Purchase Agreement (PPA) with Olam Orchards Australia Pty Ltd, a wholly owned subsidiary of leading global agribusiness Olam International Limited (Olam).
Renewable Corporate PPAs allow businesses to contribute to a lower carbon economy and reduce overall emissions, as well as potentially save hundreds of thousands of dollars in energy costs.
The deal allows Olam direct access to secure, cost effective energy with an expected significant reduction in costs over a period of 10 years. This renewable power, sourced from Ararat Wind Farm, can be used in real time to offset grid electricity consumption, potentially saving thousands of dollars in energy costs.
Olam co-founder and Group CEO Sunny Verghese said the company was proud to be one of the first businesses to sign a Corporate Renewable PPA in Australia.
“This is in line with our strategy to grow our renewable energy portfolio around the world, from solar panels for cocoa processing in Cote d’lvoire, to harnessing geothermal power for our onion dehydration plants in the USA,” he said.
“These are just a few of our initiatives to tackle climate change as part of our purpose of ‘re-imagining global agriculture’. In addition, this transaction also provides us energy cost visibility over the longer term”.
Flow Power announced the availability of Renewable Corporate PPAs earlier this year, with a view to providing Australian businesses the ability to tap into a global trend that brings energy costs down and benefits both the environment and the economy.
Flow Power managing director Matthew van der Linden said, “Our Renewable Corporate PPAs open the market to a much broader range of businesses that don’t necessarily have the scale to negotiate one-to-one with large renewable plants. It is a game changer that we expect will allow Australia to catch up with other international markets that have proven this model to be a success.”