Engie North America – the US subsidiary of the French energy utility – has signed two virtual power purchase agreements (VPPA) with WestRock, a sustainable paper and packaging producer.
The VPPAs correspond to Engie’s Bernard Creek and Chillingham Solar projects, respectively in Wharton and Bell counties, Texas. The aggregate capacity of the deals is 282MW, with 207MW contracted from Bernard Creek’s total 230MW capacity and a further 75MW from Chillingham, a 350MW nameplate capacity site.
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The deals will support WestRock’s aims to reduce its scope 1,2 and 3 emissions 27.5% by 2030.
Under a VPPA, the offtaker (WestRock) pays for the power produced at a power plant but does not receive physical delivery of electricity, instead offsetting its emissions and allowing the electricity to serve the grid.
“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, ENGIE North America.
French electrical equipment group Schneider Electric provided advisory services and strategy management for the WestRock and ENGIE agreements.
John Powers, vice president, global renewable energy and carbon advisory at Schneider Electric said: “Through projects such as Bernard Creek and Chillingham Solar, innovative companies like ENGIE and WestRock are promoting clean energy to the grid while contributing to local communities through economic development, new job opportunities and a commitment to sustainable solutions.”
On a related note, Schneider Electric spoke to PV Tech Premium last week about the potential for the development of micro-grid infrastructure across the US.