Colgate-Palmolive announced that it has signed a 20-year virtual power purchase agreement (VPPA) with the developers of a planned solar energy farm outside of Waco, Texas. The solar farm is expected to produce the equivalent of 100% of the company’s U.S. based operational electrical requirements.
The planned 209-megawatt Markum Solar Farm is a project of Scout Clean Energy, a Colorado based renewable energy developer-owner-operator and portfolio company of Brookfield Asset Management. It is expected to generate enough clean energy for the ERCOT grid to power approximately 32,200 homes. Scout intends to begin construction of the solar farm by fall of 2023 with completion by the end of 2024.
Michael Rucker, CEO and founder of Scout Clean Energy, said::
“With the PPA and construction contracts executed, we are extremely excited to move forward with the 209 MW Markum Solar project. These contracts provide Scout the certainty to build our first solar project. We had significant interest in the project and are pleased to have completed a power purchase agreement with Colgate-Palmolive.”
Through the VPPA, Colgate will garner clean energy credits that will propel the company closer to its carbon emissions goals of reaching net zero by 2040. Colgate announced during Climate Week NYC in 2022 that it was the first large multinational company in the Consumer Durables, Household and Personal Products sector to have its Net Zero Carbon targets approved by The Science Based Targets initiative (SBTi).
As part its 2025 Sustainability & Social Impact Strategy, Colgate completed four new on-site solar installations at its facilities in Turkey, South Africa, Argentina, and Brazil, in 2022. This brings the total number of Colgate locations with on-site solar to 17. As of December 31, 2022, approximately 52% of Colgate’s global electricity consumption was sourced from renewable energy.
Ann Tracy, Chief Sustainability Officer said:
“Colgate is committed to making progress towards our ambitious Net Zero goals, and we are pursuing this important priority through innovative and diverse ways that are proven and measurable. Renewable energy agreements are a valuable part of our renewable energy master plan and will help us achieve our targets of Net Zero carbon emissions by 2040 and 100% renewable electricity across our global operations by 2030.”