Crown Signs Renewable Energy Deal Significantly Expanding Coverage of Its Electricity Consumption in Europe
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Insights
Entering into a Virtual Power Purchase Agreement (VPPA) with Enel Green Power España signifies Crown Holdings' strategic move to secure a long-term supply of renewable energy. This reflects the growing trend among corporates to mitigate energy price volatility and reduce carbon footprints, aligning with global decarbonization efforts.
The choice of a photovoltaic (PV) project in Spain taps into the country's strong solar resources, ensuring a reliable energy yield. The commitment to cover the operational footprint in Europe underlines the scalability of such sustainability initiatives across international operations. Crown's proactive approach to meet its Science Based Targets initiative (SBTi) goals may positively influence investor perception, especially among ESG-focused funds.
However, the long-term nature of VPPAs carries inherent risks, such as changes in regulatory landscapes and technological advancements that could affect future energy economics. Investors should monitor the progress of the VPPA's contribution to Crown's sustainability targets and its impact on operational costs.
The announcement of Crown's first European VPPA enhances its corporate stewardship and strengthens its position in sustainability leadership within the metal packaging industry. This move is likely to resonate with stakeholders who prioritize corporate responsibility and environmental impact.
By working with Schneider Electric, Crown is leveraging expertise in renewable energy procurement, which may serve as a benchmark for best practices in the sector. The expected reduction in CO2 emissions aligns with broader societal goals of emission reduction, potentially bolstering Crown's reputation and brand value.
While this development is promising, it's essential to consider the execution challenges and the need for transparent reporting on the actual environmental benefits realized. Stakeholders will look for tangible outcomes that validate the VPPA's effectiveness in contributing to Crown's Twentyby30™ sustainability program.
The financial implications of Crown's VPPA can be multifaceted. On one hand, locking in renewable energy prices for 15 years could shield the company from future energy cost increases, potentially improving profit margins over time. This strategic hedging against energy price fluctuation is a prudent financial move.
On the other hand, the upfront costs and potential operational changes required to integrate renewable energy sources into Crown's supply chain warrant scrutiny. Investors should assess the impact of these factors on short-term financials while considering the potential for long-term cost savings and the added value from an enhanced corporate sustainability profile.
It's also important to evaluate the VPPA in the context of industry norms. The metal packaging industry is energy-intensive and Crown's commitment to renewable energy could set a precedent that may influence competitors' strategies and the industry's direction towards sustainability.
Renewable energy (RE) adoption drives Crown's Twentyby30™ targets forward; new Virtual Power Purchase Agreement (VPPA) shows continued commitment to sustainability
TAMPA, FL / ACCESSWIRE / March 19, 2024 / Crown Holdings, Inc. (NYSE:CCK) has entered a 15-year Virtual Power Purchase Agreement (VPPA) with Enel Green Power España (EGPE), Endesa's renewable energy subsidiary, securing renewable electricity from a new PV project built in Badajoz, Spain. This deal will cover all of Crown's current operational footprint in European countries that are part of the Alliance of Issuing Bodies (AIB), which manages the European Energy Certificate System, allowing the Company to advance in its Twentyby30™ sustainability program.
The PV project will contribute to Crown's overall goal of stronger corporate stewardship. To initiate this latest effort around responsible solutions, Crown worked with Schneider Electric, the leading adviser in corporate renewable energy procurement and carbon management, on the project selection and VPPA negotiation.
This agreement is Crown's first VPPA in Europe and demonstrates the Company's commitment to reduce greenhouse gas emissions and to act locally. The project is expected to produce an annual output of 285,100 Megawatt hours (MWh), of which Crown is contracted for around
In 2020, Crown became the first metal packaging manufacturer to activate renewable electricity in
Renewable energy is a key target in Crown's sustainability strategy. Once operational, the PV project VPPA will directly contribute to the Science Based Targets initiative (SBTi)-approved goal of Crown's Twentyby30™ program to achieve
"Covering our energy consumption in the EU serves as a milestone achievement for our organization," said John Rost, Senior Vice President - Corporate Technology, Sustainability and Regulatory Affairs. "As we work toward the ambitious goals of our sustainability program, it is critical we identify and implement real solutions that can reduce our energy consumption, lower our emissions and create a more balanced footprint for our business, across all regions in which we operate. Working with Schneider Electric to establish an impactful VPPA in Europe underscores that we are taking responsibility for our actions and striving to be the strongest partner possible."
"Crown stands as a leader in the packaging industry's decarbonization efforts, showing a strong commitment to sustainability," said John Powers, VP Global Renewables at Schneider Electric. "We're proud to have facilitated this pivotal agreement between Crown and EGPE, which significantly advances Crown's environmental and sustainability initiatives."
About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Tampa, Florida. For more information, visit www.crowncork.com.
For more information, contact sustainability@crowncork.com.
For editorial inquiries: Emily Hogan, Senior Account Executive, FINN Partners; Tel: (630) 248-5232; Email: emily.hogan@finnpartners.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of federal securities law. These forward-looking statements involve a number of risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2023 and in subsequent filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.
About Schneider Electric
Schneider's purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.
Our mission is to be your digital partner for Sustainability and Efficiency.
We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.
We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.
About Enel Green Power
Enel Green Power®, within the Enel Group, develops and operates renewable energy plants worldwide and is present in Europe, the Americas, Africa, Asia and Oceania. A world leader in clean energy, with a total capacity of around 61 GW and a generation mix that includes wind, solar, geothermal, and hydroelectric power, as well as energy storage facilities, Enel Green Power is at the forefront of integrating innovative technologies into renewable energy plants.
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SOURCE: Crown Holdings, Inc.
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