Charles River Laboratories Announces Long-Term Solar Contract for North American Operations

Rhea-AI Summary

Charles River Laboratories International, Inc. (NYSE: CRL) has secured a long-term solar energy contract with Duke Energy Sustainable Solutions, committing to meet its North American electric power needs with renewable energy by 2023. This includes a 15-year, 102 MW virtual power purchase agreement (VPPA) linked to the 250 MW Pisgah Ridge Solar project in Texas, projected to generate around 250,000 MWh of clean energy annually. The agreement aligns with Charles River's goal of achieving 100% renewable electricity globally by 2030, with targeted reductions in greenhouse gas emissions.

Positive

• Long-term solar energy contract to meet North American power needs by 2023.
• Commitment to 100% renewable electricity globally by 2030.
• Projected generation of 250,000 MWh of clean energy annually, benefiting over 20,000 homes.
• Reduction of GHG emissions by 26% since 2018.

Negative

• None.

Charles River Laboratories International, Inc. (NYSE: CRL) today announced a long-term solar energy contract to address the entirety of the Company’s North American electric power requirements with clean, renewable energy by 2023.

Charles River and Duke Energy Sustainable Solutions* have entered into a 15-year, 102 megawatt (MW) virtual power purchase agreement (VPPA). Charles River’s portion of the 250 MW Pisgah Ridge Solar project, which is located in Navarro County, Texas, will generate approximately 250,000 MW hours (MWh) of clean energy each year, which is the equivalent of avoiding carbon dioxide emissions from the annual electricity use of more than 20,000 homes.

The Pisgah Ridge Solar project has been developed and is owned by Duke Energy Sustainable Solutions. The project is under construction and expected to achieve full commercial operations by year-end 2022, and to begin providing Charles River with the corresponding renewable energy benefits in 2023.

Charles River’s Sustainability Initiatives

This VPPA is a significant step forward on the Company’s path towards achieving 100% renewable electricity globally by 2030, in cooperation with the RE100. Once the Pisgah Ridge Solar project is online, Charles River will be supplied by approximately 60% renewable electricity globally. Additionally, the VPPA will support Charles River’s efforts to limit climate change to 1.5 degrees Celsius as evidenced by participation in the Science-based Targets Initiative (SBTi) and Business Ambition for 1.5°C. Charles River has established goals to:

• Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions of its facilities by 50% by 2030, as compared to Charles River’s baseline in 2018; and
• Reduce absolute Scope 3 (value chain) GHG emissions by 15% by 2030 as compared to Charles River’s baseline in 2019.

Additionally, in late 2019, the Company announced the creation of the Charles River Sustainability Capital Fund, a $5 million annual commitment to fund sustainability projects to reduce environmental impact of the Company’s global sites.

Charles River was advised on the VPPA by Schneider Electric, who assisted the Company in its project selection and negotiations. To learn more about Charles River’s sustainability efforts visit its Corporate Citizenship page. The Company’s Corporate Citizenship Report is available here and discloses the most up-to-date Environmental, Social and Governance (ESG) information, including a GRI Content Index and ESG performance data table.

Approved Quotes

• “We have a responsibility to reduce our climate impact. I am proud to strategically commit to clean energy, which markedly impacts our ability to reduce GHG emissions.” –James C. Foster, Chairman, President and Chief Executive Officer at Charles River
• “Since 2018, Charles River has reduced our global GHG emissions by 26% through the procurement of renewable energy agreements at the regional or country level, as well as the implementation of numerous energy conservation projects globally. This North American VPPA will move us significantly closer to meeting our overall goal of a 50% reduction by 2030.” –Gregg Belardo, Senior Director of EHS & Sustainability at Charles River
• “We’re privileged that Charles River has chosen Duke Energy Sustainable Solutions to play a role in reducing their climate impact. Not only will Pisgah Ridge Solar deliver clean renewable energy resources to communities in Texas, it is supporting Charles River’s goals of reducing its emissions footprint in North America.” – Chris Fallon, President of Duke Energy Sustainable Solutions

About Charles River

Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.

About Duke Energy Sustainable Solutions

Duke Energy Sustainable Solutions (DESS) is a nonregulated commercial brand of Duke Energy (NYSE: DUK) – a Fortune 150 company and one of the largest energy holding companies in the U.S. – headquartered in Charlotte, N.C.

Duke Energy Sustainable Solutions is a leader in sustainable energy, helping large enterprises reduce power costs, lower emissions and increase resiliency. The team provides wind, solar, resilient backup power and managed energy services to over 1,000 projects across the U.S., with a total electric capacity of more than 5,100 megawatts of nonregulated renewable energy. Visit Duke Energy Sustainable Solutions and follow on LinkedIn and YouTube for more information.

Duke Energy is executing an aggressive clean energy strategy to create a smarter energy future for its customers and communities – with goals of at least a 50 percent carbon reduction by 2030 and net-zero carbon emissions by 2050. The company is a top U.S. renewable energy provider, on track to operate or purchase 16,000 megawatts of renewable energy capacity by 2025. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

* Duke Energy Sustainable Solutions is a non-regulated commercial brand of Duke Energy Corporation, which includes the following subsidiaries of Duke Energy Corporation that are registered to transact business in various states and may be branded as Duke Energy Sustainable Solutions for marketing purposes: Duke Energy One, Inc.; Duke Energy Commercial Enterprises, Inc.; Duke Energy Renewables, Inc.; Duke Energy Renewables Commercial, LLC; Duke Energy Renewable Services, LLC.; Duke Energy Renewables Storage, LLC; Duke Energy Renewables Wind, LLC.; Duke Energy Renewables Solar, LLC.; and REC Solar Commercial Corporation.

About Schneider Electric

At Schneider, we believe access to energy and digital is a basic human right. We empower all to do more with less, ensuring Life Is On everywhere, for everyone, at every moment. We provide energy and automation digital solutions for efficiency and sustainability. We combine world-leading energy technologies, real-time automation, software and services into integrated solutions for Homes, Buildings, Data Centers, Infrastructure and Industries. We are committed to unleash the infinite possibilities of an open, global, innovative community that is passionate with our Meaningful Purpose, Inclusive and Empowered values.

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FAQ

What is the solar energy contract announced by Charles River Laboratories (CRL)?

Charles River Laboratories announced a 15-year, 102 MW virtual power purchase agreement with Duke Energy, aiming to meet its North American electric power needs with renewable energy by 2023.

When will Charles River Laboratories start receiving renewable energy from the Pisgah Ridge Solar project?

Charles River expects to begin receiving renewable energy benefits from the Pisgah Ridge Solar project in 2023.

How much clean energy will the Pisgah Ridge Solar project generate for CRL?

The Pisgah Ridge Solar project is projected to generate approximately 250,000 MWh of clean energy each year.

What are Charles River Laboratories' sustainability goals?

Charles River Laboratories aims for 100% renewable electricity globally by 2030 and has set targets to reduce absolute Scope 1 and 2 greenhouse gas emissions by 50% and Scope 3 emissions by 15% by 2030.