AstraZeneca, Novartis, rival drug makers to buy renewable energy from Envision for manufacturing plants in China
- AstraZeneca, Lonza, Novartis, Novo Nordisk and Roche sign a three-year deal to buy renewable energy from Chinese firm Envision Energy
- Deal involves a total of 200 gigawatt-hours of electricity annually, starting from 2024: statement
AstraZeneca, Novartis and three other global drug makers have agreed to buy renewable energy from a Chinese supplier to run their manufacturing facilities on the mainland, helping to stem worsening emissions in the global healthcare industry.
The duo, together with Roche, Lonza and Novo Nordisk, signed a three-year deal for 200 gigawatt-hours (GWh) of electricity annually, Envision Energy said in a joint statement on Wednesday at the World Economic Forum in Davos, Switzerland. The value of the contract was not disclosed.
Envision will supply renewable energy to the five pharmaceutical giants from 2024 to their factories in eastern Jiangsu province, southern Guangdong province, Shanghai and Beijing.
The agreement will allow the drug makers to save 120,000 tons of carbon dioxide-equivalent emissions per year, comparable to preventing emissions generated by about 25,000 cars on the road, according to Envision.
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“Multi-year green power purchase agreements can ensure stable supply and avoid the impact on [the companies’] production and operations due to fluctuations in market prices,” Chen Dipeng, Envision’s head of power and environmental products trading and supply said in an interview.