Global companies Merck, Akamai, Synopsys and Uber announced today an aggregation deal, signing virtual power purchase agreements (VPPAs) totalling 111 MW with renewable energy provider Enel Green Power.
The deal was supported by outsourced ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More management organization Sustainability Roundtable Inc’s Net Zero Consortium for Buyers, using an aggregation model designed to enable companies with smaller and more distributed energy needs to combine their renewable energy demand to collaboratively purchase renewable energy. The agreement marks one of the largest aggregation deals to date.
Georgios Papadimitriou, Head of Enel Green Power in the U.S. and Canada, said:
“This aggregation deal demonstrates an extraordinary shift in the renewable energy purchasing market to give businesses with modest energy demand, but ambitious renewable energy goals, the opportunity to procure renewable energy in a cost-effective way. As more companies of all sizes look to power their operations with clean energy, Enel is uniquely positioned to enable that transition, by creating customized solutions to meet the energy needs of all buyers.”
Under the terms of the VPPAs, the companies will purchase energy from Enel Green Power’s Texas-based Azure Sky project. The project includes a 350 MW wind project paired with approximately 137 MW of battery storage and is expected to be operational in the first-half of 2022.
Merck’s life science business MillipoeSigma will take on 68 MW of the electricity from the agreement, enough to match 65% of Merck’s U.S. electricity consumption or 100% of the life science business’ U.S. electricity consumption.
Chris Ross, Interim CEO, MilliporeSigma, said:
“To reach our goal of becoming climate neutral by 2040, accessing renewable energy programs like the Azure Sky Wind Project will be critical to MilliporeSigma and so many companies as they put into action environmentally conscious strategies and policies.”
The remaining energy from the agreement will be allocated to Akamai (18 MW), Synopsys (15 MW), and Uber (10 MW).
Mike Mattera, Director, Corporate Sustainability, Akamai Technologies, Inc., said:
“Akamai has led the way in innovative renewable energy projects since 2018, when we were a part of the United States’ first corporate aggregated virtual power purchase agreement (“VPPA”) – a game-changing approach for smaller renewable energy buyers. Today we are proud to continue that legacy by participating in the largest aggregation to date.”
Barbara Donaldson, Senior Vice President of Workplace Resources at Synopsys, said:
“This landmark Virtual Power Purchase Agreement is instrumental to Synopsys’ ability to deliver on its greenhouse gas emissions reduction target of 25% by 2024. The 15 megawatts of wind generation capacity will help Synopsys mitigate approximately 70% of our projected North American emissions, leading to new renewable energy on the grid and displacing fossil fuels.”
Dara Khosrowshahi, CEO of Uber, said:
“As the largest mobility platform in the world, we know that our impact goes beyond our technology. We want to do our part to build back better and support a green recovery to our cities and communities.”
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