Sandoz Launches Renewable Energy Partnership To Supply Nearly 90% Of Electricity Needs For European Operations

Sandoz, a global leader in generic and biosimilar medicines, has signed a 10-year virtual Power Purchase Agreement (PPA) with Elawan Energy, a renewable energy company with global operations, for the development of new solar projects in Valladolid, Castilla y León, Spain. This agreement represents a significant milestone in Sandoz’s decarbonization strategy and reflects its commitment to climate action and sustainable business practices.

Europe hosts the majority of Sandoz’s operations, and the partnership with Elawan Energy is expected to cover nearly 90% of the current electricity demand across its European sites. As part of the agreement, the two companies will collaborate to develop new solar facilities with a total installed capacity of 150 megawatts. This initiative is part of Sandoz’s broader effort to reduce its carbon footprint and transition to renewable energy sources. 

Glenn Gerecke, Chief Manufacturing and Supply Officer, said in a statement, “At Sandoz, environmental sustainability is a core part of how we operate reflecting our responsibility to both the planet and our people. Our collaboration with Elawan Energy to develop this new solar project in Spain marks a concrete step toward decarbonizing our operations. By covering nearly 90% of electricity demand for our current European operations, we will reduce our environmental footprint and advance our commitment to a more sustainable 

future.”

It complements other Power Purchase Agreements the company has implemented to supply clean energy to its production operations in multiple locations. In line with its long-term climate goals, Sandoz announced in 2024 that it had submitted a Commitment Letter to the Science Based Targets Initiative (SBTi), confirming its intention to set science-based targets for reducing carbon emissions. The company has pledged to submit its detailed plan to the SBTi for validation by the end of January 2026.