Insight
American medical giant accelerates climate goals with help from Denmark
Danish technology is paving the way for a greener tomorrow and now Merck, known as MSD in Europe, enters into a power purchase agreement (PPA) with Danish Ørsted. The power will be produced from solar cell technology in Ørsted’s newest development out of the new Amadillo Solar Center in Texas, expected to be fully operational by early 2023.
MSD is a giant in the pharmaceutical industry with 74,000 employees worldwide and annual revenue north of $50 million. The conversion to green sustainable energy is big news in the industry and is of tremendous value to both MSD and Ørsted.
"We are very satisfied to be able to move up our goal of becoming carbon-neutral, thanks to Danish innovation and know-how."
For Invest in Denmark’s involvement, it comes from a long-standing relationship with MSD around attraction of clinical research and other market expansion opportunities to Denmark. MSD’s core activities match with the strong competencies available in Denmark within oncology and MSDs focus on improving the climate through renewable energy and circular solutions from production to patient. Invest in Denmark was able to provide MSD with a range of services including introducing MSD to the Danish life science cluster and opportunities in Denmark, understanding the framework conditions and establishment process as well as facilitating meetings with relevant partner organizations in the pursuit of improving MSDs Danish operations.
A new beginning
MSD will be the first pharmaceutical client for Ørsted paving the way for a new era for the industry. It is certainly a major step for MSD who strives to become carbon neutral, not only though the power supply, but also through sustainable solutions in production, global supply chains and logistics.
“We’re happy to partner with MSD and expand our customer base to the pharmaceutical industry. It’s exciting to join forces with them in their efforts to advance the use of carbon-free energy in the medical industry.”
The agreement means that MSD will be exclusively using sustainable energy sources by 2024. The Ørsted agreement means that MSDs ambitions will be fulfilled one year ahead the plan.
For MSD it is one of many steps towards reducing the company’s environmental impact. Innovations in human health should not happen at the cost of the environment.
“This contract is an important step in MSD meeting its commitment to sustainability by bringing carbon-free energy to the grid in Texas and reducing the environmental impact of our operations”
Taking responsibility is key
The agreement made between the parties is a so-called Virtual Power Purchase Agreement (VPPA). It represents a commitment from MSD to buy green sustainable energy at a fixed price and the agreement will enable Ørsted to develop new sustainable energy infrastructure investments across the globe.
“It may sound a bit over the top, but I think that both Ørsted and MSD are perfect examples of the fact that some of humanities greatest challenges can be solved by innovation and collaboration. Regardless whether we are talking antibiotics resistance or climate change. Today is a great day in my opinion.”
Get to know MSD
For 130 years, MSD has been inventing for life, bringing forward medicines and vaccines for many of the world’s most challenging diseases in pursuit of their mission to save and improve lives. MSD continues to be at the forefront of research to prevent and treat diseases that threaten people and animals – including cancer, infectious diseases, such as HIV and Ebola and emerging animal diseases. MSD headquartered in Kenilworth, New Jersey, USA employs 74,000 globally with approximately 200 employed in the Danish organisation.Get in touch Want to know more about how to be part of the green transition
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