Food and beverage giant PepsiCo announced today that it will source renewable energy to power 100% of its Spain and Portugal sites, through a new long-term power purchase agreement (PPA) with global energy company Iberdrola.

Iberdrola will supply green energy for 11 of PepsiCo’s plants, facilities, logistics, and distribution centers, from its Francisco Pizarro photovoltaic (PV) plant that is being developed in Spain. The facility is expected to prevent 150,000 tons of CO2 from being released into the atmosphere per year, and with 590 MW of installed capacity, will become the largest PV plant in Europe.

Sergio Hernández de Deza, Iberdrola’s Director of Large Customers and Industrial Solutions, said:

“Long-term green power purchase agreements open up many opportunities for the development of renewable projects that allow us to accelerate the energy transition to reduce dependence on fossil fuels. PPAs have become an optimal tool for managing the electricity supply of large consumer customers who share our commitment to a new, cleaner and more sustainable economic model.”

The agreement contributes to PepsiCo’s goals to achieve net zero emissions by 2040, forming part of the company’s pep+ sustainability framework. In 2020, the PepsiCo also announced a goal to source 100% renewable electricity across all of its company-owned and controlled operations globally by 2030 and across its entire franchise and third-party operations by 2040.

In its recently released ESG report, PepsiCo revealed that 70% of its global electricity needs in direct operations are now met by renewable sources.

Marta Puyuelo, Director of Corporate Affairs and Sustainability for PepsiCo Southwest Europe, said:

“We are proud to be part of the development of projects like this that are transforming our country’s energy present and future and are fully aligned with our goal to reach net zero emissions by 2040. This is one of many initiatives we are undertaking as part of PepsiCo Positive, our company’s comprehensive transformation with sustainability at the core.”