Coalition, including Microsoft and Amazon, urge EU to back 35% renewables target
A coalition that comprises of some of the largest companies in the world has formed in order to urge EU energy ministers to back a renewable energy target during a meeting on 18 December.
The coalition includes Amazon, Microsoft, IKEA, Unilever, Dupont, and Philips, and aims to convince ministers to support a renewable energy target of 35% by 2030.
“A strong investment signal is key to further positioning industries with large investment potential in supporting Europe’s clean energy goals,” wrote the coalition.
“Signatories of this declaration therefore urge member states to support a renewable energy target of at least 35% by 2030,” the coalition added.
The corporate groups, including the RE100 initiative, launched the appeal prior to the meeting held in Brussels, that will discuss the potential of sourcing 27% of the bloc’s energy from renewables by 2030.
The coalition believes this target is too low, and will not spur investment within renewable energies.
“We believe that the post 2020 Renewable Energy Directive can deliver this target by ensuring stable and predictable national deployment policies and securing existing investments.”
The coalition has asked for ministers to lift regulatory barriers in regards to corporate renewable power purchase agreements (PPAs), which they argue will aid a renewable transition.
According to the groups, corporate PPAs “enable large energy consumers in the IT, chemicals, heavy industries and other sectors, to secure a supply of clean electricity at a competitive price.”
“They also provide financial certainty for renewable energy providers and are therefore increasingly relevant as renewables become exposed to market dynamics.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.