Two virtual power purchase agreements (VPPAs) between WestRock and Engie North America will contribute to the reduction of greenhouse gas emissions on the U.S. energy grid beginning in 2024. (Photo: Business Wire)
Paper and packaging solutions company WestRock has entered into two virtual power purchase agreements (VPPA) with Engie North America, a subsidiary of Engie SA.
The agreements will support two Engie’s solar projects—Bernard Creek located in Wharton County, Texas and Chillingham Solar located in Bell County, Texas—and provide an aggregate of 282 megawatts (MW).
The new projects comprise one element of WestRock’s strategy to pursue a science-based target (SBT) to reduce Scope 1, 2 and 3 greenhouse-gas emissions by 27.5% by 2030, the company said. Schneider Electric provided advisory services and strategy management for the WestRock and Engie agreements.
“We are pleased to play a role in the development of clean energy from large scale solar projects and to join forces with ENGIE and Schneider Electric to add more renewable energy to the grid,” said David B. Sewell, WestRock CEO.
WestRock will contract 207 MW from Bernard Creek, a 230-MW solar project located southwest of Houston and is expected to have an annual output of approximately 500,000 megawatt-hours (MWh). The project, slated for completion in the first half of 2024, is expected to generate more than $45 million in revenue for Wharton County over its lifespan and to create more than 250 jobs during construction.
Additionally, WestRock will contract 75 MW from Engie’s 350-MW Chillingham Solar project. Chillingham will help support two local school districts with an estimated $70 million in revenue generated over the life of the project, of which $53 million will be paid directly to the school districts. WestRock’s share of Chillingham is expected to be approximately 200,000 MWh per year.
“We are delighted that Bernard Creek and Chillingham Solar will support WestRock’s ambitions to meet their 2030 science-based targets. ENGIE’s projects are focused on meeting the specific needs of our clients as we work together to accelerate the energy transition in North America and this agreement reflects that,” said Dave Carroll, chief renewables officer and country manager of , Engie North America.
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