Whirlpool Corporation To Install Onsite Renewable Energy At Washing Machine And Dishwasher Plants in Ohio

Rhea-AI Summary

Whirlpool Corporation (WHR) has announced agreements with One Energy to add onsite wind and solar power at its Findlay and Clyde, Ohio operations. The company currently has nine onsite wind turbines at four of its Ohio plants, supplying 22 percent of the electrical needs for those facilities. The expansion project will bring the total number of onsite turbines to five at Findlay and introduce three turbines in Clyde. The two projects combined will create 40.8 megawatts of renewable energy, positioning Whirlpool Corp. in the top 25 percent of companies on the EPA's Green Power Partnership list. The solar and wind projects are expected to be operational by early 2025, contributing to the company's net zero target by 2030. Additionally, each turbine provides scholarship money for local students pursuing STEM degrees.

Insights

Energy Sector Analyst

Whirlpool Corporation's strategic move to expand its renewable energy capacity is a significant development with potential to affect its operational costs and sustainability profile. The transition to renewable energy sources, such as wind and solar power, is a growing trend among corporations seeking to reduce their carbon footprint and align with global sustainability goals. By increasing the share of renewable energy to at least 70% for specific operations, Whirlpool is positioning itself as a leader in corporate sustainability within the appliance industry.

From a financial perspective, this investment in renewable energy can lead to long-term cost savings on energy expenses, despite the initial capital expenditure. The adoption of 'behind-the-meter' projects allows the company to generate its own power and reduce reliance on the grid, which can be financially beneficial given the volatility in energy prices. Furthermore, by entering the top 25 percent of the EPA's Green Power Partnership list, Whirlpool may enhance its brand reputation and attract sustainability-conscious consumers and investors. However, it's critical to monitor the return on investment and the impact on the company's balance sheet, as the capital costs for such projects can be substantial.

Sustainability and Corporate Governance Expert

Whirlpool's initiative not only reflects its commitment to sustainability but also indicates a proactive approach to corporate governance. The company's focus on sustainability for over 50 years and its net zero target by 2030 demonstrates a long-term vision that aligns with the Environmental, Social and Governance (ESG) criteria increasingly valued by stakeholders. By embedding sustainability into its corporate values, Whirlpool may enhance its ESG ratings, potentially impacting investor perception and access to capital.

Moreover, the provision of scholarships linked to the installation of new turbines represents a strategic approach to community engagement and investment in the local workforce, which falls under the 'Social' aspect of ESG. Such initiatives can strengthen community relations and support the development of future talent in the STEM fields. It is important for stakeholders to consider how these social investments contribute to the company's long-term sustainability goals and whether they are indicative of a comprehensive approach to corporate responsibility.

Market Research Analyst

The appliance industry is increasingly competitive and Whirlpool's investment in renewable energy can be seen as a strategic differentiator. The implementation of on-site renewable energy sources may provide a competitive edge by potentially reducing operational costs and enhancing the company’s appeal to a segment of consumers who prioritize environmental responsibility. As the industry moves towards more energy-efficient and sustainable products, Whirlpool’s operational alignment with these values could translate into increased market share.

It is essential to analyze consumer trends and how they might respond to Whirlpool's sustainability initiatives. While some consumers are willing to pay a premium for environmentally friendly products, others may remain price-sensitive. The company's ability to balance these considerations and effectively communicate its sustainability efforts to the market will likely influence the success of this strategic investment. Additionally, the potential for regulatory incentives for renewable energy adoption could further impact Whirlpool’s market position and financial performance.

BENTON HARBOR, Mich., Jan. 9, 2024 /PRNewswire/ -- Whirlpool Corporation announced today that it has entered into agreements with One Energy to add onsite wind and solar power at its Findlay and Clyde, Ohio operations. The company currently has nine onsite wind turbines at four of its Ohio plants in Findlay, Marion, Greenville and Ottawa. Combined, those turbines supply 22 percent of the electrical needs for those facilities. These two projects are among the largest behind-the-meter renewable energy projects in the U.S., and once complete will ensure the Clyde and Findlay plants receive at least 70 percent of their energy needs from onsite renewable energy.

The expansion project involves three additional turbines at the company's Findlay operations, bringing its total number of onsite turbines to five. This will be the first introduction of onsite renewable energy for operations in Clyde, Ohio with the construction of three turbines. A ground solar array will also be installed at each location. The two projects combined will create 40.8 megawatts of renewable energy, bringing Whirlpool Corp. into the top 25 percent of companies on the Environmental Protection Agency's national Green Power Partnership list.

"Our focus on sustainability goes back over 50 years, and these new onsite installations are a significant step toward achieving our net zero target by 2030 for our operations," said Pam Klyn, Whirlpool Corporation's executive vice president of corporate relations and sustainability. "Sustainability is deeply embedded in our values, and we're very excited to be making this announcement today."

The solar and wind projects are expected to be online and operational by early 2025. Each turbine that Whirlpool Corp. has installed to date provides scholarship money in conjunction with One Energy. For the six new wind turbines, six additional $5,000 scholarships will be awarded per year to students in the local area pursuing a two or four year degree in STEM (Science, Technology, Engineering, Math).

About Whirlpool Corporation
Whirlpool Corporation (NYSE: WHR) is committed to being the best global kitchen and laundry company, in constant pursuit of improving life at home. In an increasingly digital world, the company is driving purposeful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit, Yummly and InSinkErator. In 2022, the company reported approximately $20 billion in annual sales, 61,000 employees and 56 manufacturing and technology research centers. Additional information about the company can be found at WhirlpoolCorp.com.

About One Energy
One Energy Enterprises Inc. is a Findlay, Ohio headquartered industrial power company. Additional information about the company can be found at OneEnergy.com

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SOURCE Whirlpool Corporation

FAQ

What are the new agreements announced by Whirlpool Corporation?

Whirlpool Corporation has announced agreements with One Energy to add onsite wind and solar power at its Findlay and Clyde, Ohio operations.

How many onsite wind turbines does Whirlpool Corporation currently have?

Whirlpool Corporation currently has nine onsite wind turbines at four of its Ohio plants.

When are the solar and wind projects expected to be operational?

The solar and wind projects are expected to be operational by early 2025.

What is the total renewable energy created by the two projects?

The two projects combined will create 40.8 megawatts of renewable energy.

What is the company's net zero target for its operations?

Whirlpool Corp. aims to achieve net zero target by 2030 for its operations.

What benefit do the turbines provide for local students?

Each turbine provides scholarship money for local students pursuing STEM degrees.