Nestlé in the U.S., in partnership with EDP Renewables, a wind energy producer, announced a 15-year power purchase agreement that will provide approximately 80% of the electricity load for five Nestlé facilities in southeastern Pennsylvania. The agreement is a major step forward for Nestlé’s ambition to procure 100% of its electricity from renewable sources.
EDP Renewables’ Meadow Lake VI wind farm will generate and deliver 50 MW of electricity through the PJM Interconnection grid to manufacturing facilities and distribution centers operated by Nestlé Purina PetCare, Nestlé USA, and Nestlé Waters North America in Allentown and Mechanicsburg, Pennsylvania. Because the wind farm and the recipient facilities are located on the same regional grid, the power purchase agreement provides traceability from the Pennsylvania facilities back to the wind farm. With the addition of the energy from the wind farm, 20% of the electricity Nestlé uses in the U.S. will come from renewable sources in 2019.
This power purchase agreement is in line with Nestlé’s support and advocacy for state policies to ensure companies have access to renewable energy. This renewable energy project will help Nestlé cut energy costs, avoid the volatility of fossil fuel prices, and stay competitive.
“Our partnership with EDP Renewables propels us forward in our ambition to create zero environmental impact by 2030, and is another example of our business transformation journey,” said Kevin Petrie, Chief Supply Chain Officer at Nestlé USA. “This power purchase agreement perfectly illustrates our creating shared value strategy—that we create value for our business through contributing to a healthier future for the planet.”
Through this power purchase agreement, EDPR will expand the capacity of its Meadow Lake VI wind farm in Benton County, Indiana. The expansion will add 50 MW, enough to power approximately 17,700 homes for one year, to the existing 150 MW EDPR has already secured for the project. Additionally, the wind farm will bring a number of economic benefits to the state of Indiana in the form of jobs, landowner and tax payments, and money spent in local communities. Construction on the expansion project will begin in the next two months, and the facility will be fully operational at the end of 2018. With the completion of the wind farm, the six-phase Meadow Lake project will total 800 MW.
“This power purchase agreement enables EDP Renewables to further expand our presence in Indiana, the state in which we are the leading producer of wind energy,” said João Manso Neto, CEO of EDP Renewables. “EDP Renewables is proud to partner with Nestlé to help in achieving its forward-looking goal of obtaining all of its energy from renewable sources.”