European Energy and Mars have signed a long-term power purchase agreement (PPA) covering the majority of electricity produced by the planned Skuodas Wind Farm in Lithuania.

The facility, scheduled to begin commercial operation in 2028, will have an installed capacity of 161MW and is projected to generate approximately 490GW-hours of electricity per year.

The agreement provides Mars with bundled guarantees of origin, allowing the company to source verified renewable energy for its own consumption and operations in the region.

Under the terms of the PPA, Mars will receive most of the wind farm’s annual output, supporting the company’s pet food manufacturing site in Lithuania with a stable supply of renewable electricity.

The project is expected to avoid around 120,000t of carbon dioxide-equivalent emissions annually by replacing fossil fuel-based power generation.

The long-term contract is intended to support the financial and commercial arrangements required for the wind farm to achieve financial closure.

European Energy aims to use this PPA as part of its wider efforts to expand renewable energy capacity in the Baltic region, while Mars continues to pursue its strategy of integrating renewable power into its value chain globally.

The Skuodas project reflects ongoing efforts within Lithuania to strengthen energy independence by expanding domestic renewable power production and reducing reliance on imported fossil fuels.

As part of this agreement, Mars obtains guarantees of origin from new-build power resources, ensuring that the renewable electricity supplied is tracked and verified.

Mars Sustainability global VP Kevin Rabinovitch said: “We are proud to partner with European Energy to help bring the Skuodas wind project to life.

“By working together on this long-term PPA, we are not only securing renewable electricity for Mars operations and value chain in the region but also supporting new investment in Lithuania’s energy infrastructure.”

The project is yet to reach financial close.

Once operational, the Skuodas Wind Farm will contribute to national renewable energy targets and support export-oriented production at the Mars facility in Lithuania.