Thermo Fisher Scientific Accelerates Renewable Energy Commitment with X-ELIO Solar Agreement
Thermo Fisher Scientific Inc., a global leader in scientific services, has taken a significant step toward a more sustainable future with the announcement of a 10-year virtual power purchasing agreement (VPPA) with X-ELIO, an international renewable energy developer. This strategic agreement is designed to increase the availability of renewable electricity across the pharmaceutical and healthcare supply chains, reinforcing Thermo Fisher’s commitment to environmental responsibility and carbon reduction.
Lorca Solar Project: A Major Leap Toward Sustainability
The Lorca solar project, expected to be operational in early 2026, represents a substantial investment in renewable energy infrastructure. The project includes a collaborative cohort of three key partners from the pharmaceutical and healthcare sectors, working together to drive the transition to cleaner energy sources.
Thermo Fisher’s share of the Lorca solar project, combined with the Serbal solar project announced in December 2023, will enable the company to match 100 percent of its addressable European sites’ electricity needs with renewable energy. This milestone also plays a critical role in achieving the company’s broader goal of sourcing 80 percent of its global electricity from renewable sources by 2030.
With a 73 MW share of the Lorca solar project, Thermo Fisher’s annual renewable electricity generation is expected to reach approximately 150,000 megawatt-hours. This output is equivalent to powering around 40,500 European homes for a full year, underscoring the tangible impact of the initiative on the environment and local energy markets.
Reducing Emissions Through Collaboration
One of the most significant aspects of this agreement is its ability to drive down both Scope 2 and Scope 3 emissions across the value chain. Scope 2 emissions originate from purchased electricity used to power a company’s operations, while Scope 3 emissions are associated with indirect sources, such as value chain partners and suppliers.
Through this agreement, Thermo Fisher has partnered with industry leaders GSK, Gilead Sciences, and Haleon, leveraging the collective power of the pharmaceutical and healthcare industries’ Energize initiative. By working together, these companies can significantly reduce their carbon footprints while promoting best practices for sustainable energy adoption.
Konrad Bauer, Senior Vice President of Global Business Services at Thermo Fisher Scientific, emphasized the importance of collaboration in reaching sustainability goals. “When we collaborate with our customers and suppliers, we accelerate our collective progress toward net-zero emissions,” he stated. “Achieving 100 percent renewable electricity for our European sites is a significant milestone on our journey. As the cohort lead for this agreement facilitated by the Energize initiative, we are committed to leveraging our experience and insights to help enable similar milestones for our partners.”
The Energize Initiative: Advancing Renewable Energy in Healthcare
The Energize initiative, managed by Schneider Electric in collaboration with the Pharmaceutical Supply Chain Initiative (PSCI), is a groundbreaking program aimed at promoting renewable electricity adoption across the pharmaceutical and healthcare industries. By providing a structured framework and access to renewable energy projects, Energize seeks to increase sustainability efforts among suppliers and industry players.
Thermo Fisher joined the Energize initiative in 2021 as part of its broader renewable electricity strategy, reinforcing its leadership in corporate sustainability. As the elected cohort lead for the Lorca solar VPPA, Thermo Fisher continues to demonstrate its commitment to achieving net-zero emissions by 2050.
John Powers, Vice President of Global Renewables at Schneider Electric, highlighted the importance of collective action. “Making the most out of our energy and resources is crucial as we collectively move toward more sustainable solutions across industries and around the world,” he said. “The Energize program aims to drive supply chain decarbonization across the pharmaceutical and healthcare industries while serving as a playbook for other sectors as they look to power their operations with renewable energy.”
Thermo Fisher’s Expanding Renewable Energy Commitments
Thermo Fisher has been steadily increasing its commitments to sustainability over the past few years. In 2023, the company established its global renewable electricity commitment, aligning with the Sustainable Markets Initiative (SMI) Health Systems Task Force joint supplier standards. This followed the company’s ambitious pledge to cut Scope 1 and Scope 2 emissions by 50 percent by 2030, using a 2018 baseline.
Additionally, the company has set plans to ensure that all of its U.S. sites operate on 100 percent renewable electricity by 2026. These goals reflect Thermo Fisher’s dedication to reducing its environmental impact and setting an industry-wide example for sustainability.
The Impact of the VPPA Model
Virtual Power Purchase Agreements (VPPAs) have become an increasingly popular mechanism for corporations to invest in renewable energy while securing long-term price stability. Unlike traditional power purchase agreements, a VPPA does not involve the physical delivery of electricity. Instead, it functions as a financial contract where the buyer—Thermo Fisher, in this case—purchases renewable energy credits (RECs) corresponding to the clean electricity generated by the Lorca solar project.
By utilizing a VPPA, Thermo Fisher can support the development of new renewable energy projects, indirectly increasing the availability of green electricity on the grid. This strategy enables companies to contribute to decarbonization efforts without the need for on-site renewable energy installations.
Broader Implications for the Healthcare and Pharmaceutical Sectors
The healthcare and pharmaceutical industries are increasingly recognizing the need to address climate change and reduce carbon footprints. Many of these companies operate energy-intensive facilities, including manufacturing plants, research laboratories, and distribution centers, all of which contribute to greenhouse gas emissions.
By participating in renewable energy initiatives such as the Energize program and committing to large-scale solar projects, companies like Thermo Fisher are setting a new standard for sustainability in the sector. These actions not only help reduce operational costs over the long term but also align with growing regulatory and consumer expectations for environmentally responsible business practices.
Challenges and Future Considerations
While the move toward renewable energy is a positive step, challenges remain. Grid infrastructure limitations, regulatory barriers, and energy storage constraints can all impact the effectiveness of renewable energy adoption. However, through strategic partnerships and continued investments, companies can navigate these challenges and maximize the benefits of clean energy.
Moreover, the success of the Lorca solar project and similar initiatives may inspire other companies to pursue their own sustainability goals more aggressively. As more organizations commit to renewable energy, the overall demand for fossil fuels decreases, accelerating the global transition toward a low-carbon economy.
