MORE than half of Port of Melbourne’s electricity could come from renewable sources under a new power purchase agreement with Iberdrola Australia.

The PPA commenced on 1 July 2024, enabling the port to secure at least 60% of its electricity needs from sources such as solar and wind generated in Victoria.

Port of Melbourne was one of seven Australian infrastructure assets (including Sydney Airport and Adelaide Airport) to sign onto stage three of the $700-million Australian Infrastructure Renewable Energy Program.

The program, led by IFM Investors and PoM shareholder QIC, was launched in 2022 with several other businesses, including NSW Ports, signing onto stage one. The program is expected to facilitate the supply of 500 gigawatt-hours of renewable energy each year once all assets role onto the program.

The energy suppliers for stage three are Iberdrola and Squadron Energy, joining Origin Energy and Stanwell as suppliers to the assets who joined the program in the first two stages.

The stage-three consortium is the first to sign for green rights beyond 2030.

Port of Melbourne’s agreement with Iberdrola Australia will remain in place until the end of June 2031.

“With more than half our electricity soon to be sourced from renewable sources, we are continuing work to transition the remaining 40%,” Port of Melbourne CEO Saul Cannon said.

Through short-term Green Power agreements, Port of Melbourne is looking to increase its usage of renewable energy, dedicating to source 100% of its business operations’ electricity needs from renewables by June 2029.

“We are also transitioning our corporate vehicle fleet and marine survey vessel to electric or zero-emissions fuel technologies,” Mr Cannon said.

The port noted the PPA signing follows a series of sustainability milestones, including the completion of a $475-million sustainability linked loan.