Low-carbon energies: what is a PPA?

Across the world, low-carbon and renewable energies like wind, solar, and hydropower are transforming the way we power our lives and industries. Low-carbon and renewable energies help reduce carbon emissions and accelerate the energy transition.

But how do companies secure access to this low-carbon and renewable energy? One solution is the Power Purchase Agreement, or PPA.

It's a long-term contract between a producer of renewable energy and a company that consumes it. Think of it like a subscription: a company commits to buying clean energy for years, and new projects like solar or wind farms can be built.

PPAs help companies directly support low-carbon projects. For industries, this means cleaner energy and more sustainable operations. All over the world, companies are using PPAs to accelerate the transition.

At Air Liquide, we have accelerated our low-carbon electricity sourcing. Since 2020, the Group has signed PPAs, especially in carbon-intensive countries, that represent a total reduction of 3.5 million tonnes of CO2 per year, with full ramp-up expected by 2027.

Low-carbon electricity represents 40% of the Group's total power purchased. By powering our operations with low-carbon and renewable energies, we're not only cutting emissions, we contribute to building a sustainable future.