Axpo and Jabil, a major global electronics manufacturer headquartered in the United States of America (USA), have announced that they have renewed their long-term partnership in Hungary with a renewable energy corporate power purchase agreement (cPPA).
The seven-year deal covers Jabil’s entire energy consumption in Hungary at two locations, marking an important advance towards the company’s environmental, social and corporate governance (ESG) goals.
Axpo and Jabil extend energy partnership in Hungary
Axpo will secure the entire electricity consumption of Jabil’s facilities in Nagyigmánd and Tiszaújváros
Under the flexible agreement, covering the period 2024 to 2030, Axpo will secure the entire electricity consumption of Jabil’s facilities in Nagyigmánd and Tiszaújváros, Hungary with wind energy from the south-eastern Europe region.
Axpo and Jabil signed their first cPPA in Hungary in June 2022, with physical deliveries beginning in January 2023. Due to significant volatility in energy markets in recent years and subsequent stabilization, the two companies decided to renew and extend their original agreement.
Both companies explore additional partnerships
This agreement strengthens the existing partnership between Axpo and Jabil, which also collaborate in Switzerland and Poland. Both companies are also exploring additional partnerships in other markets and for different commodities.
Axpo’s Head of Regional Origination for Central and South-Eastern Europe, Călin Ratiș, said: “We are delighted to have an S&P 500 company become part of our growing customer portfolio in Hungary. Our ability to offer tailor-made energy solutions is underpinned by our global, regional and local expertise, extensive renewable energy portfolio, and innovative and agile way of working.”
Corporate power purchase agreement signed
Călin Ratiș adds, “Corporate power purchase agreements such as this transform words into action, when it comes to the energy transition, and we look forward to supporting other companies on their sustainability journeys.”
Axpo’s Senior Originator in Hungary, Peter Hornyak, stated: “This deal is a major milestone for Axpo’s operations in Hungary and reinforces our ambitious business growth strategy. Having opened the Hungarian office two years ago, we are pleased to see the market’s interest in our offering and hope to close similar long-term contracts in the near future.”
Commitment to sustainability and corporate responsibility
Jabil’s Senior Vice President (SVP) and Chief Compliance Officer, Thomas Cetta, said: “We are grateful for the opportunity to extend our partnership with Axpo. Together, we are pushing the boundaries of what's possible in renewable energy utilization.”
Thomas Cetta adds, “This deal aligns with Jabil’s strategic goals and demonstrates our commitment to sustainability and corporate responsibility, marking an important advance towards the company’s environmental, social, and corporate governance (ESG) goals for the future.”
Axpo - the deal follows its first cPPA in Slovenia
Axpo has a strong presence throughout central and south-eastern Europe
For Axpo, the agreement follows its first cPPA in Slovenia, as well as several important deals concluded in south-eastern Europe in 2022 and 2023. These include the first ever long-term wind power PPAs in Croatia and Serbia, adding 216 MW to the company’s regional renewable energy portfolio.
Axpo has a strong presence throughout central and south-eastern Europe. Offices in several countries – including Poland, Romania, Hungary, Austria, Bulgaria, Croatia, Serbia, Bosnia and Herzegovina, and Greece – offer customers a wide range of services, including the full supply of power and gas, energy trading, and green certificates.
Axpo’s expansion of its regional network
The company’s office in Budapest, Hungary, is the latest addition to Axpo’s regional network.
The Origination team handling Hungarian activities has built a considerable long-term client portfolio, including several international household names in the fast-moving consumer goods sectors, as well as pharmaceuticals and construction.