Kellogg Company said it will achieve over 50% renewable energy to address the global electricity needs of its owned manufacturing by the end of 2022 through a virtual power purchase agreement with a wind energy provider.
The company signed a long-term wind energy virtual power purchase agreement (VPPA) in North America with Enel Green Power for about 360 gigawatt-hours of wind electricity annually, which is equal to 50% of the volume of electricity used across Kellogg’s North American manufacturing facilities.
According to Enel X, a subsidiary of Enel Group, a VPPA is when, to get financing, a company developing a renewable energy project enters into a VPPA with a third party (such as Kellogg) to sell the power to the grid when the project is complete. By virtue of the VPPA, companies can claim credit for bringing renewable energy onto the grid without having to put in on-site renewable generation or directly source energy from renewable power.
Kellogg’s VPPA portion of the renewable energy generated by the wind farm will be equivalent to the amount of electricity it takes to power more than 43,000 homes each year, which Kellogg determined using the U.S. EPA Greenhouse Gas Equivalencies Calculator.
Kellogg said its new VPPA progresses the company toward its global Better Days commitments to reduce scope 1 and 2 greenhouse gas emissions by 65% and to achieve 100% renewable electricity by 2050.
Kellogg measures greenhouse gas emissions and renewable electricity in accordance with the GHG Protocol.
“Kellogg has been working to reduce its carbon footprint across our value chain for more than a decade,” said Amy Senter, chief sustainability officer, Kellogg Company. “Our latest VPPA further demonstrates to investors, stakeholders and our consumers that we are taking action to address climate change.”
With the support of Kellogg’s VPPA, Enel has started construction of Azure Sky wind in north central Texas, its first wind and storage project globally, that combines a 350 megawatt wind facility paired with approximately 120MW of battery storage — one of the largest battery storage facilities in the world. The Azure Sky wind farm will add clean energy resources to the community’s local grid and is expected to be operational in 2022.
Kellogg’s portion of renewable electricity generated by the wind farm is estimated to avoid 250,000 metric tons of carbon dioxide emissions each year, equivalent to the carbon reduction of removing about 55,000 passenger vehicles off of the road annually.
Kellogg was advised on the VPPA agreement by Schneider Electric Energy & Sustainability Services in Louisville, Kentucky, which assisted the company in its project selection and negotiations.
“As our first project to pair wind and storage, and our largest hybrid plant globally, Azure demonstrates Enel’s continued commitment to leading the energy transition toward a 100% renewable-powered electric grid,” said Salvatore Bernabei, CEO of Enel Green Power. “This transition is supported and accelerated by customers, like Kellogg Company, who are placing sustainability at the core of their business.”