These days when the focus on environmental issues are under the spotlight across the world, Our New Energy (ONE) is extremely happy to announce its involvement in the first of its kind deal where one of the largest energy-intensive consumers in the world will directly contribute to the energy transition by entering into a direct agreement with a subsidy-free renewable asset for the sourcing of electricity for its consumption.
Today Foresight Group, a leading investment fund, and ArcelorMittal, the largest steel-maker and one of the largest energy consumers in the world, announce their 10-year corporate power purchase agreement (PPA), the first deal that enables the investment in renewable energy without any sort of public support via a 10 year private deal between the generator and end-consumer. The PPA covers the production from two subsidy-free solar projects in Toledo during the next 10 years.
Having provided advisory to Foresight Group on the structuring, origination and negotiation of this first-of-its-kind PPA, we believe corporate PPAs are poised to play an increasing and very significant role in the energy transition. However and despite much being written, matching industrial consumption with renewable production is not a simple undertaking. This is why we are especially proud of our participation in and witnessing of the creation of this agreement from inception until closure. The flexibility shown and cooperation between the parties has ensured that some of the fundamental difficulties could be overcome through a pragmatic and goal-oriented approach.
We feel privileged to have assisted Foresight Group in this transaction with ArcelorMittal.