Arla Foods has moved all of its European manufacturing sites onto renewable electricity, using long-term power purchase agreements (PPAs) to lock in supply and prices as energy volatility and decarbonisation pressures intensify across the dairy sector. “For energy developers, long-term offtake agreements are often the condition for committing capital to large renewable projects,” said David Boulanger, executive vice president of supply chain at Arla Foods. The remaining electricity demand is covered by renewable certificates, including some purchased directly from Arla farmers who generate power on-site, such as through wind turbines. “Using renewable electricity allows those investments to deliver real emissions reductions.”Arla said it is now assessing options to increase the share of renewable electricity used at its operations outside Europe. Arla Foods is owned by more than 7,600 dairy farmers across seven European countries and supplies brands including Arla, Lurpak, Castello and Puck.