The Kellogg Company has signed a long-term wind energy virtual power purchase agreement (VPPA) in North America with Enel Green Power. The agreement will give Kellogg about 360 gigawatt hours of wind electricity per year, equal to 50% of electricity used across the company’s North American manufacturing facilities.
With the support of Kellogg’s VPPA, Enel has started construction of Azure Sky wind in north central Texas, its first wind + storage project globally, that combines a 350 megawatt (MW) wind facility paired with approximately 120 MW 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 CO2 emissions each year. Kellogg was advised on the virtual power purchase agreement by Schneider Electric Energy & Sustainability Services, who assisted the company in its project selection and negotiations.
The food manufacturing giant says the VPPA is part of its journey toward its commitments to reduce Scope 1 and 2 greenhouse gas emissions by 65% and to achieve 100% renewable electricity by 2050.
Kellogg has several renewable energy projects already in place around the world.
—Kellogg’s facilities across Western Europe have achieved 100% renewable electricity to address its operations through the purchase of Renewable Energy Certificates (RECs).
—Kellogg’s Australia operations also achieved 100% renewable electricity through a long-term PPA.
—Kellogg’s LEED certified Pringles plant in Enstek, Malaysia, and its cereal plant in Taloja, India, use renewable electricity directly from on-site solar panels.
—In North America, Kellogg has purchased Renewable Energy Certificates for multiple facilities and offices in several states.
—The company’s Kashi office in Solana Beach, California, utilizes on-site solar panels for portions of its electricity use.
As the demand for sustainable investing continues to grow, investors more than ever want to know that companies are actively addressing (ESG) issues. S&P Global recently ranked Kellogg’s sustainability performance within the top 15% of the food industry, the company says.