Bayer & Iberdrola: Pushing Sustainable Procurement Practices
Bayer is making history after the ratification by Iberdrola of the total decarbonisation of its plant in Asturias, Spain.
Bayer's centre in La Felguera, which concentrates 100% of Bayer's acetylsalicylic acid production, will become the first in its sector in Spain to achieve this milestone and one of the first worldwide. The adoption of renewable energy in producing steam is a prominent testament to the company's commitment to sustainable procurement practices.
This strategic collaboration represents the first heat purchase agreement of its kind in Spain, integrated with an innovative molten salt thermal storage system developed and patented by Inerco. Such advancements highlight the potential for leveraging cutting-edge technology in procurement to enhance environmental sustainability.
Innovative procurement strategies
The project reflects a significant element of Bayer and Iberdrola’s partnership aimed at transforming the industrial model within the Asturian basin. With 15MW of renewable energy, this initiative underscores the role of procurement in large-scale energy projects.
Iberdrola will install the innovative thermal storage system adjacent to Bayer's plant, facilitating a seamless transition from renewable electricity to the necessary steam for operations. This endeavour serves as a benchmark for procurement strategies that prioritise sustainability.
Advanced sustainable technologies
The implementation of advanced technological solutions allows Bayer to effectively decarbonise its operations while mitigating the risks related to fossil fuel market volatility. The expected outcome includes reduced CO2 emissions and pollution, increased local renewable energy consumption and a positive impact on the national trade balance.
According to a joint press release, "The project makes it possible to take advantage of Spain's renewable generation potential and increase industrial competitiveness."
Mario Ruiz-Tagle, CEO of Iberdrola Spain, emphasises: "This is the first major steam electrification project in Spain and one of the largest in the world, which represents the great commitment of Bayer and Iberdrola to Asturias.
"It uses thermal storage technology, available technology that allows up to 50% of the heat consumed by industry in Spain to be decarbonised."
Such remarks reinforce the profound impact of strategic procurement decisions on achieving sustainable development goals.
Pioneering sustainable procurement
Pedro Marín, Executive Chairman of Inerco, acknowledges the trust of Iberdrola and Bayer, stating: "The trust of Iberdrola and Bayer in Inerco, for the design and implementation of our technology in this important project, is a great satisfaction and an important recognition, which will surely lead us to replicate systems of these characteristics in many industrial facilities in the future."
Jorge Julián Álvarez, Director of Bayer's Asturian centre, echoes the sentiment, saying, "The agreement we are now announcing is a success not only for our centre but also for the production and industrial model of the area, which, thanks to innovation, is reinforced to continue developing in the future in a more sustainable way."
These statements underscore the pivotal role that innovative procurement plays in fostering sustainability and industrial progress.
Sustaining renewable energy initiatives
The origin of Bayer's factory in La Felguera traces back to the mining basin, capitalising on coal mining waste.
The collaboration with Iberdrola has been fundamental to Bayer's decarbonisation. Since 2020, the two companies have maintained a power purchase agreement for supplying 100% renewable electricity across all Spanish centres.
The project's construction and start-up phase will create more than 30 jobs, indicating the socio-economic benefits of integrating sustainability into procurement strategies. Furthermore, the heat generation facility will extend its renewable heat supply to the planned Asturian Public Health centralised laundry complex, anticipated on the former Lada thermal power plant grounds.
Understanding thermal storage systems
A thermal storage system involves transforming renewable electricity into the necessary industrial heat.
It enables the factory to store energy and use it during peak renewable generation hours, offering greater flexibility and operational cost savings. The deployment of such systems in other industries could transform procurement strategies across Europe, with Spain leading in molten salt technology applied in solar thermal plants.
This signifies how strategic procurement and technological implementation can address significant portions of fossil fuel consumption by electrifying industrial heat requirements.
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