Powering the future with renewable energy
August 15, 2024
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At Organon, we support the transition to a low-carbon economy. Our long-term ambition is to achieve net zero greenhouse gas (GHG) emissions in our operations and throughout our supply chain. Together, these efforts aim to create a healthier planet for women, their families, their communities and all of society.
One of the key ways we are progressing on our path to net zero is through the purchase of renewable energy. Our manufacturing facilities in Oss, Netherlands, and Heist, Belgium, are our largest energy usage sites. And now thanks to a new virtual purchase power agreement (VPPA) with Schneider Electric, a leader in digital transformation of energy management and automation, these sites will run entirely on renewable energy for the next 10 years, starting in December 2025.
A VPPA is a long-term contract between a renewable energy developer and a dedicated buyer. This agreement enables developers to secure financing for new wind or solar projects and allow buyers to save money on their energy costs by locking in predictable pricing from clean energy sources. A VPPA is better than simply procuring renewable electricity because it involves investing in a new renewable energy project, rather than just buying electricity from an existing project.
Organon joins 20 other leading global pharmaceutical companies participating in the Energize Program, led by Schneider Electric and endorsed by the Pharmaceutical Supply Chain Initiative (PSCI), which aims to promote renewable energy within the pharmaceutical supply chain. The Energize Program will collectively add 370GWh of new solar energy to the European grid annually. Through this 10-year PPA, enough renewable energy will be generated to power approximately 33,708 households each year, preventing an estimated 258,478 tonnes of CO2 emissions.