Sandoz has announced another step in its sustainability strategy. The manufacturer of generics and biosimilars has signed a ten-year virtual power purchase agreement with Elawan Energy. Under this PPA, new solar projects are planned in Valladolid, Castilla y León, Spain. The planned facilities are intended to supply a large share of the electricity demand at the company’s European sites from renewable sources.

Goal: Around 90 percent of electricity demand from renewable sources

The agreement foresees that the solar projects will reach an installed capacity of 150 megawatts. According to the company, this will cover almost 90 percent of the current electricity demand at its European sites. Europe is the central production and operations hub for the pharmaceutical company, making this measure a significant contribution to its decarbonization strategy.

Sustainability strategy and climate targets of Sandoz

Glenn Gerecke, Chief Manufacturing and Supply Officer at Sandoz, stated that environmental sustainability is a core part of the company’s operations, reflecting its responsibility to both the planet and its people. The collaboration with Elawan Energy to develop the new solar project in Spain, he said, represents a concrete step towards decarbonizing its business activities. By covering almost 90 percent of the electricity demand at its current European sites, the generics manufacturer can reduce its environmental footprint and advance its commitment to a more sustainable future.

Sandoz contribution to global decarbonization

The company further stated that the new PPA complements existing agreements for renewable electricity supply already implemented at multiple production sites worldwide. In 2024, the generics manufacturer submitted a Commitment Letter to the Science Based Targets Initiative (SBTi) to set science-based targets for reducing CO2 emissions. The pharmaceutical company has committed to submitting its plan for validation by the end of January 2026.