Hershey Announces New Renewable Energy Agreements Aligned with 2030 Goal to Reduce Emissions by More Than 50%

Rhea-AI Summary

The Hershey Company (NYSE: HSY) has announced two significant clean energy partnerships aimed at transitioning to renewable energy. The first project, a 20 MW solar farm in Camden, North Carolina, will reduce CO2 emissions by 32,025 metric tons annually. The second project involves a 50 MW solar power agreement with National Grid Renewables for the Noble Project in Texas, projected to lower CO2 emissions by approximately 83,625 metric tons per year. Together, these projects will decrease Hershey's carbon footprint by 115,650 metric tons annually, aligning with their goals to cut greenhouse gas emissions by over 50% by 2030.

Positive

• Partnerships to develop renewable energy projects reduce Hershey's CO2 emissions by 115,650 metric tons annually.
• First solar farm in North Carolina will provide 20 MW of clean energy and create local jobs.
• Agreement for 50 MW of energy from the Noble Project in Texas supports economic growth and job creation.

Negative

• None.

HERSHEY, Pa., April 20, 2021 /PRNewswire/ -- The Hershey Company (NYSE: HSY) today announced two new clean energy partnerships to develop solar projects in the U.S. as it moves its operations toward the use of clean and renewable energy.

Hershey signs two new clean energy partnerships as it moves its operations toward the use of clean and renewable energy.

For the first project, located in Camden, North Carolina, Hershey has made a 15-year power purchase agreement (PPA) that will enable the financing and construction of the company's first utility-scale solar farm. The farm is being developed by global renewable energy developer BayWa r.e. This solar project will be a 20 megawatt (MW-AC) facility on 218 acres of land. Once completed, the North Carolina project will reduce CO₂ emission by 32,025 metric tons per year, the equivalent of emissions incurred from driving more than 80 million miles in the average passenger car or charging nearly 3.9 billion smartphones.* Construction of the new solar farm is expected to be completed in late July. 

In addition, Hershey has signed a solar power purchase agreement (PPA) with National Grid Renewables for 50 megawatts (MWac) of the previously announced Noble Project (Noble), currently under construction in Denton County, Texas.  Hershey's solar contract will account for an estimated 118,000 megawatt hours per year, creating a reduction of approximately 83,625 metric tons of CO2 emissions annually, equivalent to driving 210 million miles in the average passenger car or charging more than 10 billion smartphones.*  Hershey is one of several companies involved in the Noble  Project, which is estimated to reduce carbon dioxide emissions by a total of 450,000 metric tons annually during the first 20 years of operations.

Together, both solar projects will generate significant clean power in North Carolina and Texas as well as significantly reduce Hershey's CO2 footprint by 115,650 metric tons each year. The projects support the company's recently announced science-based targets commitments to reduce greenhouse gas (GHG) emissions in line with the global best practice of the Paris Climate Agreement to limit global temperature rise to 1.5°C.

Renewable energy investments and energy efficiency projects are a key focus area for Hershey to achieve its goal to reduce Scope 1 and 2 emissions by more than 50% by 2030. 

"As we continue on our path towards an increased reliance on clean and renewable energy, we're excited to partner with BayWa r.e. and National Grid Renewables to develop these solar projects in North Carolina and Texas," said Jeff King, Senior Director of Global Sustainability and Social Impact. "Not only will these solar projects help Hershey to reduce its impact on the environment, they will also create jobs and help contribute to the growth of local economies and our commitment to reduce our GHG footprint." 

Edison Energy, a sustainability and energy management consultancy, advised Hershey on its environmental initiatives and selection of BayWa r.e. and National Grid Renewables as solar developers. Edison Energy has advised global companies, universities and cities on more than 6.7 gigawatts of renewable energy projects across North America and Europe.

"We're committed to a clean energy future, and we're thrilled to work with forward-looking, corporate leaders like Hershey to address their ambitious climate goals," said Jam Attari, CEO of BayWa r.e. Solar Projects LLC in the U.S. "Renewable projects like Camden both support decarbonization efforts and have been the driver of skilled jobs creation in the energy economy and transition required to meet the continuing needs of these market leaders."

"National Grid Renewables is proud to partner with Hershey and other stakeholders on Noble to provide strong economic benefits for the local community of Denton County," stated Nathan Franzen, Vice President, Development for National Grid Renewables. "We currently estimate that 250 workers will construct Noble, 3-5 new permanent jobs will be created to support project operations, and millions of dollars will be produced locally through new tax revenue creation and increased spending – all while generating clean, solar energy for Texas residents."

*Calculated using the United States Environmental Protection Agency's (EPA) greenhouse gas equivalencies calculator. This calculator uses marginal emissions rates.

About The Hershey Company

The Hershey Company is headquartered in Hershey, Pa., and is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. Hershey has approximately 17,000 employees around the world who work every day to deliver delicious, quality products. The company has more than 90 brands around the world that drive more than $8 billion in annual revenues, including such iconic brand names as Hershey's, Reese's, Kit Kat®, Jolly Rancher, Ice Breakers, SkinnyPop, and Pirate's Booty.

For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably.  Hershey founder, Milton Hershey, created the Milton Hershey School in 1909 and since then the company has focused on helping children succeed.

To learn more visit www.thehersheycompany.com. 

About BayWa r.e.

At BayWa r.e. we r.e. think energy -- how it is produced, stored and can be best used to enable the global renewable energy transition that is essential to the future of our planet. We are a leading global developer, service supplier, distributor and solutions provider and have brought over 4 GW of energy online and manage over 10 GW of assets. We are also an Independent Power Producer with an expanding energy trading business. BayWa r.e. works with businesses worldwide to provide tailored renewable solutions. Operating 100% carbon neutral, we are also committed to our own sustainability journey. Every day, we are working hard to actively shape the future of energy in a diverse, equitable and inclusive workplace. Our shareholders are BayWa AG, a €17.2 billion (US$19.6 billion) global business, and Energy Infrastructure Partners, a leader in energy infrastructure investment. BayWa r.e. Solar Projects LLC is a leading utility-scale solar developer. For more information, visit https://us.baywa-re.com/en/solar/

About National Grid Renewables

National Grid Renewables, part of the competitive, unregulated National Grid Ventures division of National Grid (NYSE: NGG), develops, owns and operates large-scale renewable energy assets across the United States, including solar, wind and battery storage. As a farmer-friendly and community-focused business, National Grid Renewables develops projects for corporations and utilities that seek to repower America's electricity grid by reigniting local economies and reinvesting in a sustainable, clean energy future.

National Grid Renewables has a robust development pipeline of wind, solar and battery storage projects in various stages of development throughout the United States, as well as geographically diverse operational assets across the country. It supports National Grid's vision of being at the heart of a clean, fair, and affordable energy future for all. Please visit www.nationalgridrenewables.com to learn more.

About Edison Energy

A wholly owned subsidiary of Edison International (NYSE: EIX), Edison Energy provides independent, global advisory solutions to help large corporate, industrial, and institutional clients better understand and navigate the choices and risks of managing energy. We enable decision-makers in organizations to deliver on their strategic, financial and sustainability goals by addressing the three biggest challenges in energy today: cost, carbon, and complex choices. We deliver and implement specialized solutions across analytics, renewables, sustainability, supply, and demand to align our client's energy investments with their strategic goals. For more information, visit www.edisonenergy.com.

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SOURCE The Hershey Company

FAQ

What are Hershey's new clean energy partnerships about?

Hershey announced two partnerships to develop solar projects in North Carolina and Texas, aiming to enhance their renewable energy use.

How much CO2 will Hershey's new solar projects reduce?

The projects are expected to reduce CO2 emissions by a total of 115,650 metric tons annually.

What is the timeline for Hershey's North Carolina solar project?

Construction of the solar farm in North Carolina is expected to be completed by late July.

How does Hershey's solar project affect local economies?

The solar projects are projected to create jobs and stimulate local economic growth in the areas involved.

What is Hershey's emissions reduction target for 2030?

Hershey aims to reduce its Scope 1 and 2 emissions by more than 50% by 2030.