Back to News
This private power purchase agreement will be the first and largest successfully signed in the country
ID Energy Group and Lafarge have signed a long-term power purchase agreement (PPA), under which the construction-specialized company will benefit from renewable energy at a fixed price for 15 years.
Under this agreement, ID Energy Group will develop, build, and operate the project located at the LAFARGE factory in Királyegyháza (Hungary). The size of the photovoltaic solar plant makes it one of the first and largest private power purchase agreements successfully signed in the country.
The factory is located in one of the best solar irradiation regions, near the city of Pécs, in southern Hungary. Once operational, LAFARGE Cement Hungary Ltd. will have the opportunity to secure one-third of its total electricity consumption from the photovoltaic solar plant, as part of the Holcim Group’s goals to adopt renewable energies and reduce greenhouse gas emissions.
The project, developed by ID Energy Group together with Voltrack Holding Zrt, is expected to obtain the necessary permits in 2023 and begin commercial operation in early 2024.
The total investment of more than 16 million euros will not only stimulate the local companies involved, but also benefit the local community of Királyegyháza during its expected lifespan of over 40 years.
According to Francesco Cortesi, Managing Director of Hungary and Southeast Europe at ID Energy Group, “this PPA is the first step toward fulfilling the company’s goal of becoming one of the leading providers of clean energy for industrial customers in Hungary and Southeast Europe. With the visible impacts of climate change, industrial energy consumers will have no choice but to switch to renewable energy sooner rather than later, which also provides security against future electricity price fluctuations like the ones we are currently experiencing.”
For his part, Tamás Hoffmann, Country Manager of LAFARGE Cement Hungary Ltd., stated about the cooperation: “The construction sector has a key role to play in accelerating the transition of our world towards net zero. The Holcim Group, represented by LAFARGE Cement Hungary Ltd., was the first company to have its short- and long-term CO2 targets validated by the Science Based Targets initiative for all scopes, setting the benchmark for our industry. With the renewable energy solution from ID Energy Group, we will achieve our net zero target in scope 2. This means we can minimize our CO2 emissions related to energy consumption.”
CO2 emissions from the cement industry can be understood through three different scopes: Scope 1 includes all direct emissions. It is the core of LAFARGE’s strategy and represents 75% of its footprint. Scope 2 includes indirect emissions from the generation of purchased and consumed electricity in equipment owned or controlled by the company. It represents 5% of its carbon footprint. Scope 3 emissions include other indirect emissions, such as the extraction and production of purchased materials and fuels, and transportation. It represents 20% of LAFARGE’s carbon footprint.
About ID Energy Group:
The business group specialized in photovoltaic energy, ID Energy Group, was founded in 2008 and has grown both nationally and internationally, becoming a major player in the renewable energy sector. It currently employs more than 130 workers and has a strong international presence with offices in Spain, Poland, Hungary, Croatia, and Serbia. It is also entering the Italian market.
About LAFARGE Cement Hungary Ltd.:
LAFARGE Cement Hungary Ltd. offers a unique solution for the construction sector. LAFARGE employs around 150 people, and its net sales exceeded 26 billion HUF in 2021.
LAFARGE operates a cement plant in Királyegyháza and a clay and limestone quarry in Bükkösd. Since 2011, the Királyegyháza cement plant has used the most modern technology available and has become one of the leading cement producers with its solutions for the construction industry. LAFARGE brings differentiated and innovative products to the market—both bagged and bulk—to meet the evolving needs of customers and end users. For its professional work, LAFARGE was awarded the Business Superbrands prize in 2019.
LAFARGE was also recognized with the Energy Efficiency Award (2019) for its achievements in environmental protection and the circular economy. In addition, LAFARGE aims to support the local community by organizing various volunteer activities and implementing its Social Value Program. As a socially responsible company, LAFARGE was awarded the Social Responsibility Award in 2021 and was also named Responsible Employer of the Year in 2021.
