The Clorox Company Signs 47-Megawatt Virtual Power Purchase Agreement

(Credit: The Clorox Company)

The Clorox Company announced that it signed a 12-year, 47-megawatt virtual power purchase agreement (VPPA) with Enel Green Power North America to purchase renewable electricity beginning in 2023. When it goes into effect, this deal is expected to support about half of the renewable electricity needed to cover its US and Canada operations.

Clorox first achieved 100% renewable electricity for its US and Canada operations in January 2021 when its first VPPA with Enel Green Power North America went into effect, covering about half its electricity needs at the time. To achieve and maintain this goal, Clorox has been purchasing renewable energy credits (RECs) on the open market to cover the balance of its electricity needs. Based on the company’s current and expected electricity demands in the US and Canada, this second agreement is intended to replace the need to purchase RECs from the open market when it goes into effect.

The 47 MW VPPA is a 12-year commitment to purchase renewable energy generated and delivered to the electricity grid from Enel Green Power’s 25 Mile Creek wind farm in Oklahoma. The 250MW project is currently under construction. The wind farm is expected to come on-line at the end of 2022, with Clorox’s agreement coming into effect on January 1, 2023. At that time, Clorox will purchase nearly 20% of the power generated by this facility.

Duke Energy explains that the draw for a VPPA is that “physical electricity is not delivered via VPPAs, allowing companies to invest in renewables without the constraints of geographic location or building conditions. Instead, the electricity is delivered to the grid and companies pay a fixed price for the clean electricity produced.” 

By matching 100% of its US and Canada electricity needs with renewable sources, Clorox is reducing nearly 160 thousand metric tons of CO2 emissions each year, based on its 2020 electricity consumption.

In 2021, the Clorox Company announced new science-based targets (SBTs) as part of its climate strategy, which will put the company on a path to net zero emissions across Scopes 1, 2 and 3 by 2050. 

It also played a part in calling on the federal government to implement strong and specific national policies to accelerate the transition to a zero-carbon power sector and expand access to clean energy for customers.