Spanish renewable energy company Acciona Energía has signed a power purchase agreement (PPA) with the National Mining Company of Chile (ENAMI) to supply electricity from the beginning of next month.

Acciona Energía is subsidiary of Acciona, which is based in Madrid.

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Under the PPA, Acciona Energía will be supplying electricity to ENAMI facilities located in Antofagasta, Atacama and Coquimbo regions in Chile.

To fulfil the energy requirements of the three plants, Acciona Energía will be building a new photovoltaic plant in the north of the country.

Acciona Energía South America CEO Ignacio Escobar said: “Helping the National Mining Company of Chile to achieve 100% renewable consumption gives us great satisfaction, due to the importance of the client, the sector it operates in, and because it strengthens our position in the corporate PPA market in the country.

“The agreement also enables us to increase our photovoltaic capacity in Chile, which represents a major milestone in our development activity.”

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“Helping the National Mining Company of Chile to achieve 100% renewable consumption gives us great satisfaction.”

The deal also covers the modernisation of the Fundición Hernán Videla Lira foundry located in the town of Paipote. Operations there are stated to commence in 2022.

The supply of renewable energy to ENAMI plants is expected to reduce more than 300,000 tonnes of carbon emission from thermal plants located in the country.

Acciona intends to supply renewable energy to the plants in 2022.

ENAMI executive vice-president Jaime Pérez de Arce said: “This contract is part of the modernization that we are driving forward in ENAMI. This is very important for us, as it demonstrates our commitment to the sustainable development of the company and the country.

“The new emission-control technology that we will incorporate in the foundry at Paipote, plus the fact that all our plants are supplied with clean energies, places us among the companies with highest environmental standards in the sector.”