Arla Foods has reached a green milestone. By the end of 2025, the dairy giant had signed agreements that mean that all of the group's dairies in Europe are now covered by 100 percent renewable electricity. This applies to the electricity consumption of 46 production plants in seven European countries, which together account for around 93 percent of Arla's total electricity consumption. Arla Foods said in a press release.
The renewable electricity comes from a combination of market-based certificates and long-term Power Purchase Agreements (PPAs) that Arla has entered into in recent years. The agreements include the delivery of 44 GWh annually from solar and wind power plants in Pronsfeld, Germany, close to Arla's largest dairy, 20 GWh annually from two solar parks in Lincolnshire and Kent, UK, 43 GWh annually from a solar park in Denmark and 90 GWh annually from a solar park in Sweden, which according to Arla is the largest solar PPA in the country's history.
- This is a great achievement for our cooperative and the result of many years of work. The fact that we are now running on 100 percent renewable electricity is done through long-term agreements that contribute to creating more renewable energy in the EU and the UK, says David Boulanger, Group Director of Supply Chain at Arla Foods.
The remaining part of the electricity consumption is covered by certificates, including to a lesser extent certificates purchased directly from Arla farmers who produce renewable electricity on their farms. At the same time, Arla has invested in electrification of the supply chain, so that electricity today accounts for almost 30 percent of the company's total energy consumption.
- While reducing energy consumption will always be our top priority, electrifying our supply chain is also an important driver to future-proof our operations and reduce emissions from them. This not only makes us less dependent on fossil energy sources, and thus vulnerable to geopolitical and market fluctuations, it also contributes significantly to our work on sustainability in the supply chain – especially now that we use 100 percent renewable electricity, says David Boulanger.
Arla will now explore the possibilities of increasing the share of renewable electricity at dairies outside Europe.
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