Iberdrola España has entered a long-term power purchase agreement (PPA) with Tubos Reunidos Group, a leader in the production of seamless steel tubes, to supply clean electricity to its factories in Álava and Biscay, Spain.
The PPA involves the provision of 120 gigawatt hours (GWh) of renewable energy in total for the duration of the agreement, sourced from 10MW of Iberdrola’s solar photovoltaic portfolio, to power the production of Tubos Reunidos’ net zero seamless steel tube range, O-Next.
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The partnership between Iberdrola España and Tubos Reunidos Group is set to enhance the sustainability of industrial operations, with Iberdrola facilitating the supply of clean energy with guarantees of origin.
The agreement is a significant step in Tubos Reunidos Group’s decarbonisation strategy, positioning them as the world’s first producer of zero-emission seamless steel tubes with 0.0 CO₂ emissions.
Iberdrola Clientes España director David Martínez stated: “Iberdrola España and Tubos Reunidos Group are aligned in their joint commitment to driving a more sustainable and efficient future. Both companies play a key role in accelerating the energy transition and promoting decarbonisation in the industrial sector. Collaborations like this are essential to support the development of renewables within the electricity generation mix.”
The collaboration not only reinforces Iberdrola España’s commitment to the electrification of industry but also supports Tubos Reunidos Group in their pursuit of innovative and sustainable manufacturing solutions.
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By GlobalDataThis move is instrumental for Tubos Reunidos’ customers, who aim to minimise the carbon footprint of their final products.
Tubos Reunidos Group CEO Carlos López de las Heras stated: “We are undergoing a continuous improvement process that involves the entire organisation to ensure that our processes and products are more sustainable. With this agreement, we are advancing our strategy to be a driver of industrial decarbonisation, achieving a green value chain for businesses and supporting climate neutrality.”
In a related development, Iberdrola has agreed to sell its smart metering business, SP Smart Meter Assets (SPSMAL), in the UK to Macquarie for £900m.
The transaction is pending approval from the UK’s competition authority and set to conclude in the third quarter of 2025. SPSMAL is responsible for managing 2.7 million meters across the UK.
