Today we are pleased to announce the signing of a Power Purchase Agreement with innogy, a European-based renewable energy operator. This agreement will provide solar power to West Fraser’s Alberta mills from innogy’s Canadian Vauxhall solar plant (27 MWp).
This renewable power agreement assists West Fraser to better manage energy supply during peak sawmill loading conditions, providing economic, renewable power to the Company’s Alberta mills.
“We have a track record of investing in innovations focused on sustainable energy systems and developing renewable energy sources. Today 75% of our energy is renewable, and that will grow further as a result of this solar power partnership,” says Keith Carter, VP Pulp and Energy Operations at West Fraser. “We’re pleased to partner with innogy on this project, and to secure competitively-priced renewable energy to sustainably supply our Alberta sawmills.”
The ten-year agreement provides power price certainty and an estimated annual contribution of more than 45,000 MWh of carbon-free energy. As a result of this agreement, 50% of the Company’s electricity comes from renewable energy sources.
From Innogy’s perspective, the agreement is an important demonstration that solar farms do not need provincial subsidies to be economic and that climate protection is possible under current market conditions. The Vauxhall, A.B. solar plant providing the power to West Fraser does not have government subsidies to support its operation.