In a significant move towards sustainability, Ahold Delhaize has entered into a virtual power purchase agreement (VPPA) with Spanish renewable energy company BRUC. This agreement will fund the establishment of five solar power plants in Seville, Spain, aimed at powering a large portion of Ahold Delhaize’s European operations. Specifically, this initiative is expected to cover approximately 30% of the total electricity required by the retail giant in this region, underscoring its commitment to reducing carbon footprints across its operations.
As part of the company’s Renewable Energy Program, this project represents a vital milestone in Ahold Delhaize’s broader strategy to achieve net-zero scope 1 and 2 carbon emissions by 2040. The construction of the solar plants is projected to commence by the end of this year, with energy generation expected to begin in 2026. The added capacity will amount to around 515 gigawatt-hours per year, which is enough to supply approximately 132,000 households annually. Ahold Delhaize’s plans include a contract for about 90% of the plants’ installed capacity and securing renewable energy certificates for a 15-year term.
The significance of this agreement is highlighted by Frank Sluis, CFO of Ahold Delhaize Europe & Indonesia, who stated, “We are thrilled about the signing of this VPPA and the development of the solar plants in Seville, Spain. It marks a significant step in our Renewable Energy Program, aimed at enhancing energy efficiency, generating our own renewable energy, and sourcing green energy.” This statement not only reflects the company’s ambition but indicates ongoing efforts to normalise sustainability within retail operations.
Ahold Delhaize’s commitment to renewable energy stems from its acknowledgment that electricity was the largest source of its scope 1 and 2 emissions when it began its net-zero journey. Remarkably, through their Renewable Energy Program, the company has managed to reduce emissions from electricity usage by two-thirds in European operations — a testament to the effectiveness of strategic energy management. The Seville project aims to continue this momentum, with a goal to eliminate all electricity emissions entirely by 2035.
Ahold Delhaize’s approach to achieving net-zero emissions involves a combination of strategies. Firstly, the company focuses on minimizing energy consumption by implementing efficiency measures across its brands. Secondly, it seeks to produce as much renewable energy as possible on-site, which includes installing solar panels on rooftops of stores, distribution centers, and offices. Finally, the remaining energy needs are met through power purchase agreements (PPAs), further emphasizing a commitment to sustainable sourcing.
The drive toward sustainability is not limited to Europe. In December 2023, the Dutch brand Albert Heijn, a subsidiary of Ahold Delhaize, announced a procurement agreement for the Ecowende wind park in the North Sea, further expanding the company’s renewable energy portfolio.
In the United States, Ahold Delhaize has also taken notable steps in sustainability. Partnerships with General Mills showcase efforts to implement regenerative farming practices, while alliances with Kellanova and agribusiness Bartlett aim to address greenhouse gas emissions stemming from wheat farming and shrimp supply chains.
Ahold Delhaize USA, the branch operating in North America, is ranked No. 11 on Progressive Grocer’s 2024 list of top food and consumables retailers. This recognition highlights not only its market presence but also its reputation as one of the most sustainable grocers, affirming the company’s commitment to environmental responsibility and ethical retail practices.
In conclusion, Ahold Delhaize’s initiative in signing the VPPA is not merely a contractual obligation; it is a strategic endeavor that aligns with proactive sustainability goals. Such projects not only enhance the company’s energy profile but also demonstrate how retail giants can effectively contribute to renewable energy efforts. As the company positions itself at the forefront of sustainability, it sets a precedent that could inspire others in the industry to follow suit, reinforcing the narrative that retail can be a powerful sector for environmental change.
