Key Takeaways
- Syngenta has signed its first virtual power purchase agreement (vPPA) with Statkraft.
- The agreement covers Syngenta’s Crop Protection and Seeds operations in Europe for five years.
- The contract represents 125 GWh of renewable electricity per year, totaling 625 GWh by 2030.
- The vPPA supports Syngenta’s carbon reduction targets without altering operational energy supply.
- The arrangement also supports the continued operation of unsubsidized wind assets in Germany.
Syngenta Advances Renewable Energy Strategy Through vPPA
Syngenta, a global agricultural innovation company, has entered into a five-year virtual power purchase agreement with Statkraft, a European provider of renewable energy solutions. The agreement covers Syngenta’s Crop Protection and Seeds operations and represents an annual volume of 125 GWh of renewable electricity, amounting to 625 GWh by the end of the contract in 2030.
According to the companies, the vPPA marks Syngenta’s first use of this procurement model and is intended to support the company’s broader sustainability and decarbonization strategy across its European operations.
“This is Syngenta’s first vPPA, marking a pivotal step in our decarbonization strategy,” said Rachel Stenson Bugnon, Global Head CP Sourcing at Syngenta. She noted that the agreement allows the company to progress toward its carbon reduction targets while maintaining operational efficiency.
Structure and Scope of the Statkraft vPPA
The agreement is based on an artificial wind farm model developed by Statkraft, which aggregates the generation capacity of onshore wind turbines across the German market. This approach enables customized electricity supply solutions for corporate customers.
Under the vPPA, Syngenta secures renewable electricity indexed to the spot market for a fixed five-year period and receives certificates of origin for the agreed volume. As a financial contract, the vPPA does not involve physical delivery of electricity, allowing Syngenta to pursue renewable energy sourcing without modifying existing energy supply contracts or operational processes.
“VPPAs are becoming increasingly important in Germany,” said Sascha Schröder, Vice President Central European Origination at Statkraft. He added that the structure helps bridge the gap between wind farm operators facing subsidy expiration and companies seeking long-term renewable power procurement.
Supporting Decarbonization and Wind Asset Viability
Beyond Syngenta’s sustainability objectives, the agreement is designed to support the continued economic operation of wind facilities that are no longer eligible for government subsidies. By providing a long-term offtake mechanism, the vPPA helps maintain the viability of existing renewable assets and contributes to ongoing clean energy generation within the grid.
The companies emphasized that this type of agreement enables corporate buyers to advance climate goals while supporting renewable energy markets, particularly in regions undergoing subsidy transitions.
Syngenta and Long-Term Sustainability Goals
Syngenta indicated that the vPPA with Statkraft aligns with its long-term sustainability commitments, including reducing greenhouse gas emissions across its value chain. By leveraging financial renewable energy contracts, the company aims to decouple decarbonization progress from operational constraints.
As virtual power purchase agreements gain traction across Europe, Syngenta’s adoption of the model reflects a broader trend among industrial and agricultural companies seeking flexible pathways to meet climate and energy targets.
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