(Alliance News) - Garofalo Health Care Spa and Iren Mercato Spa, a company of the Iren Spa Group, signed on Wednesday the preliminary binding agreement preparatory to the signing of a corporate Power Purchase Agreement for the supply of electricity from renewable sources over the period 2024-2028 intended to meet GHC's energy consumption.

As part of the agreement, about 60 percent of GHC's energy needs are expected to be met by the Iren Group's 18.4MW photovoltaic plant located in Palo del Colle (BA) on the basis of a fixed price below the average values of 2021, the year before the energy shock.

"In this way, GHC will considerably reduce the raw material supply price, while mitigating its exposure to energy market volatility over a medium-term horizon," the companies explained in a note.

"The agreement reflects the energy supply strategy defined by GHC, completing the path started in 2022 with the implementation of a beauty contest aimed at rationalizing and homogenizing supply at the group level through the gradual contracting of individual facilities with the new supplier during 2023."

The companies recalled that the deal allows GHC to continue to achieve its ESG goals by virtue of 100% renewable supply certified through Guarantees of Origin.

Garofalo trades in the green 1.0 percent to EUR4.07 per share, while Iren trades in the red 0.4 percent to EUR1.69 per share.

By Claudia Cavaliere, Alliance News reporter

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