EssilorLuxottica and ERG sign a long-term Corporate PPA agreement in Italy for the supply of electricity produced from renewable sources

EssilorLuxottica and ERG signo Power Purchase Agreement for 900 GWh of clean energy in the period 2023 - 2034. The agreement provides for the sale by ERG of approximately 75% of the energy produced in the Partinico-Monreale wind farm near Palermo, Italy.

Key Highlights:

* Following the replacement of the entire facility with latest generation equipment, the wind farm will consist of 10 turbines of 4.2 MW with a total installed power of 42 MW.

* The wind farm is expected to have an estimated annual production of 94GWh (compared to the current 27 GWh).

Original Press Release:

Charenton-le-Pont, France and Genoa, Italy, March 9 -- ERG S.p.A. issued the following news release:

EssilorLuxottica, a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, and ERG, a leading European producer of energy from renewable sources through its subsidiary ERG Power Generation, announced today that they have signed a twelve-year Power Purchase Agreement (PPA) for the supply of approximately 900 GWh of green energy between 2023-2034.

The agreement is based on the sale by ERG of approximately 75% of the energy produced by its Partinico-Monreale wind farm near Palermo, Italy, the first in the Group's portfolio to complete repowering activities. Following the replacement of the entire facility with latest generation equipment, the wind farm will consist of 10 turbines of 4.2 MW with a total installed power of 42 MW (compared to the previous 19 turbines for a 16 MW installed power) and an estimated annual production of 94GWh (compared to the current 27 GWh). The wind farm is in an advanced stage of construction and will come into operation during the second quarter of 2023.

For EssilorLuxottica, this agreement marks an important step towards its objective of becoming carbon neutral in its direct operations (Scope 1 and 2 emissions) by 2025, starting with Europe by the end of the year, as outlined in its “Eyes on the Planet” Sustainability program.

Francesco Milleri, Chairman and CEO of EssilorLuxottica commented: “At EssilorLuxottica we envision a better, cleaner future where our planet and people can thrive. As a sign of our long-term commitment in this area, we are proud to announce this strategic partnership with ERG supporting our goal to become carbon neutral in our direct operations and to reduce the impact of our value chain. Through Eyes on the Planet, we are contributing to the global agenda of tackling climate change and protecting our planet for generations to come”.

Paolo Merli, Chief Executive Officer of ERG commented: “We are pleased with this agreement, a partnership between two leaders of the Italian industrial context committed to contributing to the decarbonization process through the development and use of renewable energy. The agreement allows us to maximize the value of our first Repowering project in Italy through energy sales mechanisms capable of stabilizing revenues, which are even more important given the current strong volatility scenario”.

About EssilorLuxottica

EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world to see more and be more by addressing their evolving vision needs and personal style aspirations. The Company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux and Transitions, and world-class retail brands including Sunglass Hut, LensCrafters, Salmoiraghi & Viganò and GrandVision are part of the EssilorLuxottica family. EssilorLuxottica has approximately 190,000 employees. In 2022, the Company generated consolidated revenue of Euro 24.5 billion. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP. For more information, please visit www.essilorluxottica.com.

About ERG

ERG is an industrial company that has been operating in the energy market for over 80 years, 70 years out of which in the oil sector supporting the development of the Country. ERG has been able to anticipate the current global decarbonisation process of the energy system through a complete transformation of its business model and to face global energy scenario challenges. It has completed the ecological transition by abandoning the oil sector and acquiring a leading role in the generation of electricity from renewable sources and natural gas in about ten years. Today it is the leading Italian wind operator, in the top ten European wind producers and among the top six photovoltaic operators in Italy.

Source: ERG S.p.A.

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