Iberdrola has signed a 25-year power purchase agreement with SABIC for the development of a 100 MW renewable energy project in Spain.

The €70m ($82m) project is claimed to be the world’s largest on site photovoltaic self-consumption system.

The facility will power SABIC’s Cartagena industrial facility making the site the region’s first large-scale chemical production facility to operate on 100% renewable electricity.

The plant will consist of 263,000 solar modules and will increase the renewable capacity installed by Iberdrola in the region of Murcia by almost 60%.

Up to 500 jobs will be generated during the construction of the project.

The project falls under efforts by the two companies to align their businesses with carbon emissions reduction and sustainability policies.

Eduardo Insunza, the global strategic customers director at Iberdrola, said: “PPAs continue to place value on the competitiveness of renewables and continue to open up opportunities for the development of innovative projects that are transforming the present and future of energy in our country.

“The long-term energy purchase and sales contracts provide stability to investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption.”

Bob Maughon, SABIC’s executive vice-president for sustainability, technology and innovation, added: “This pioneering agreement with Iberdrola is a significant step towards achieving our long-term sustainability and clean energy goals.

“Partnerships of this kind are the cornerstone of our business growth model. The photovoltaic solar power plant in Cartagena demonstrates that SABIC continues to drive the sustainability agenda in the chemical industry and that a large-scale transition is possible.”

“The new photovoltaic plant will deliver an 80kt annual reduction in indirect CO2emissions, and reinforces our support for and contribution to wider climate change initiatives such as Europe 2030 and our alignment with the UN’s Sustainable Development Goals, where we can have the greatest impact.”

PPAs signed by Iberdrola in Spain, the United Kingdom, the United States and Mexico account for over 2,500MW.