The AGL Energy Limited (ASX: AGL) share price is 0.78% higher today at $10.95 amid the company announcing a seven-year power purchase deal with renewable energy benefits.
AGL and ASX 200 biotech CSL Limited (ASX: CSL) have just inked the power purchase agreement (PPA), under which CSL will buy all of the electricity required for its Victorian operations from AGL.
This is expected to amount to about 114 GWh of energy per year.
As part of the deal, CSL will purchase renewable energy certificates from AGL to match 100% of its electricity consumption.
The certificates are initially expected to be generated from the AGL-operated Macarthur Wind Farm in Victoria.
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AGL share price higher on news of second high-profile PPA
Last month, AGL did a similar PPA deal over a 15-year period with Microsoft Corp (NASDAQ: MSFT).
AGL says these types of PPA deals reflect how it is "participating in the transition to renewable energy".
Microsoft's renewable energy certificates will come from the Rye Park wind farm project in NSW owned by Tilt Renewables.
AGL and Tilt have their own 15-year deal under which AGL will take 45% of the wind farm's output.
In a statement, AGL explained that each renewable energy certificate represents a quantity of renewable energy generated by an eligible power station under the renewable energy certificate scheme.
AGL chief customer officer, Jo Egan, said:
Renewable-linked PPAs like this one can assist our customers in their energy transition journey while also helping to support the ongoing operation of our renewable energy assets.
Registered owners of renewable energy certificates can on-sell them for additional revenue.
They can also surrender them to the Clean Energy Regulator. They can do this to fulfil their obligations under renewable energy legislation, or to meet their own carbon offset goals.
AGL share price in 2023
The AGL share price has lifted 36% in the year to date.
