In a strategic move towards bolstering its sustainability endeavors, Saputo Inc. (TSX: SAP) has inked a significant 15-year virtual power purchase agreement (VPPA) with North American power producer Capital Power (TSX: CPX). Facilitated by energy procurement advisor Schneider Electric, this long-term commitment stands as a pivotal milestone for Saputo’s environmental stewardship initiatives.
The agreement focuses on a Canadian-based wind facility, Halkirk 2 Wind, presently under construction. Pending final regulatory approvals and operational commencement, Saputo’s contracted portion of the wind facility is projected to yield approximately 206,300 MWh of renewable electricity annually. This move is poised to slash the company’s CO2 emissions by over 140,000 tonnes, akin to removing more than 30,000 cars from the roads. Ultimately, this VPPA is anticipated to curtail Saputo’s global CO2 footprint by 13% against its fiscal 2020 baseline.
Since publicly declaring its Environmental Pledges in 2020, Saputo has been diligently addressing climate change concerns. The company has allocated $70 million in capital investment, funding over 65 projects aimed at mitigating the carbon, energy, and water intensities of its operations. Additionally, Saputo sealed another long-term power purchase agreement in Australia in 2021.
Looking ahead, the company is gearing up to formulate post-2025 climate commitments and targets, aligning with the guidance of the Science-based Targets initiative (SBTi). Saputo remains steadfast in collaborating with farmers, milk suppliers, and industry experts to combat climate change and ensure sustainable dairy production practices.
Carl Colizza, President and Chief Operating Officer (North America) at Saputo, emphasized, “As a global leader in the food industry, it is vital we demonstrate our commitment to the long-term sustainability of the dairy industry. This VPPA is an important step in sourcing clean, renewable electricity to reduce the carbon footprint of our operations, so that we may play our part as a sustainable dairy processor and safeguard the environment for future generations.”
Jason Comandante, Senior Vice President, Head of Canada for Capital Power, expressed, “We are pleased to collaborate with industry leaders such as Saputo and Schneider Electric in delivering reliable, affordable, and decarbonized energy to our North American customer base.”
John Powers, Vice President of Renewable Energy & Cleantech for Schneider Electric, hailed the collaboration as a global best practice for the energy transition, showcasing the power of innovative partnerships and technology to fortify Saputo’s position as a leading sustainable dairy processor.
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