The long-term power purchase agreement (PPA) will enable PepsiCo to power 11 of its facilities in Spain and Portugal with 100% renewable electricity. The supply under the deal, which will start in 2023, will help decarbonize operations at the company’s snacks and beverages production plants, as well as logistics and distribution centres. The agreement will help PepsiCo reach its target of reducing direct GHG emissions (Scope 1 and 2) by 75% and indirect emissions (Scope 3) by 40%, by 2030.
PepsiCo joins fellow snacks and beverages producer Danone and pharmaceutical company Bayer, in offtaking power from the Francisco Pizzaro project. Danone España signed a PPA to offtake 73 GWh/year from the project for a period of 10 years in Nov’21. The company’s suppliers, Graham Packaging and Salvesen Logística, have also joined the agreement, which is effective from Apr’22. Meanwhile, Bayer signed a 10-year PPA with Iberdrola in Nov’20 to power three factories, five R&D centres and the company's Iberian headquarters with electricity from the project. The agreement with Bayer is also effective in 2022.
The 590 MW project, named after 16th century Spanish conquistador Francisco Pizarro, occupies an area of 1,300 hectares in an extension that covers two municipalities in the province of Cáceres in western Spain. The project represents an investment of $355 million. For Iberdrola, the recent PPA adds to its growing portfolio of renewable capacity contracted under bilateral agreements, which now stands at 4 GW. In recent years, the company has signed agreements with more than 50 multinational offtakers, including the 5 major big tech companies: Google, Amazon, Apple, Facebook and Microsoft. In Spain, Iberdrola’s corporate PPAs cover corporations operating in the banking, telecommunications, breweries, distribution, sports and pharmaceuticals sectors.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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