Kellogg's Takes Aim at Sustainable Energy Goals by Entering VPPA With Enel Green Power

By James White Thursday, March 4, 2021

Food manufacturing giant Kellogg’s announced that the company is entering into a long-term virtual power purchase agreement (VPPA) in North America with multinational renewable energy business Enel Green Power.

The move serves to further push the company toward its Kellogg’s Better Days sustainability commitments, which include a number of initiatives and goals designed to lessen the carbon impact of the business as well as improve global food security and access to food for those in crisis or need.

"Kellogg has been working to reduce its carbon footprint across our value chain for more than a decade," said Chief Sustainability Officer at Kellogg Company, Amy Senter. "Our latest VPPA further demonstrates to investors, stakeholders, and our consumers that we are taking action to address climate change."

Under the terms of the VPPA, Kellogg’s agrees to purchase roughly 360 gigawatt-hours (GWh) of wind electricity annually. The purchase is equivalent to about half of the electricity the company uses for its North American facilities. By 2050, the business plans to operate on 100% renewable energy sources.

Landscape with windmills. Text on the image says, "Kellogg's Better Days."

Moving Toward ‘Better Days’

With the support from the VPPA with the plant-based food manufacturing company, Enel Green Power is beginning the construction of the Azure Sky wind farm and energy storage facility.

"As our first large-scale project to pair wind and storage, and our largest hybrid plant globally, Azure demonstrates Enel's continued commitment to leading the energy transition towards a 100% renewable powered electric grid," said Salvatore Bernabei, CEO of the renewable energy company and Head of Enel's Global Power Generation business line. "This transition is supported and accelerated by commercial customers, like Kellogg Company, who are placing sustainability at the core of their business."

The business is building the energy plant in Throckmorton County, Texas, which will consist of 79 turbines generating enough electricity to power over 118,000 US households annually. The energy company claims that the plant will avoid 842,000 tons of CO2 emissions every year.

Joining the Renewable Energy Trend

Kellogg’s joins a rapidly growing number of businesses committed to solely relying on renewable energy or becoming net-zero companies within the next few decades. Automotive giant GM plans to become carbon neutral by 2040, and energy company BP aspires to become a net-zero business by 2050. Other companies, including Amazon, Microsoft, and PepsiCo, have also set ambitious sustainability goals.

Kellogg Company’s stock price rose slightly after the announcement of the VPPA, starting at $57.04 per share at market opening and ending the day at $57.33 per share. Kellogg’s boasts a market cap of $19.72 billion.

Enel Green Power generated over $6.3 billion in revenue for the company during the first nine months of 2020. Enel’s stock price is currently sitting at $9.09 per share. Market research expects the global wind turbine market to reach $134.6 billion by 2023.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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