WestRock and ENGIE Sign Agreement to Add Renewable Energy to U.S. Grid

Rhea-AI Summary

WestRock (NYSE:WRK) has entered into two virtual power purchase agreements (VPPAs) with ENGIE North America to support the reduction of greenhouse gas emissions. The VPPAs will add renewable energy to the U.S. energy grid and contribute to WestRock's commitment to reduce greenhouse gas emissions by 27.5% by 2030. The agreements support two solar projects in Texas, Bernard Creek, and Chillingham Solar, for an aggregate of 282 MW. Schneider Electric provided advisory services for the agreements.

Texas-based solar projects to support WestRock’s pursuit of science-based targets for reduction of greenhouse gas emissions

ATLANTA--(BUSINESS WIRE)-- WestRock (NYSE:WRK), a leader in sustainable fiber-based paper and packaging solutions, today announced it has entered into two virtual power purchase agreements (VPPAs) with ENGIE North America (ENGIE), a subsidiary of ENGIE S.A. and global leader in the net zero energy transition. The VPPAs are designed to add renewable energy to the U.S. energy grid and mark a step forward in WestRock’s commitment to reduce greenhouse gas emissions.

Two virtual power purchase agreements (VPPAs) between WestRock and Engie North America will contribute to the reduction of greenhouse gas emissions on the U.S. energy grid beginning in 2024. (Photo: Business Wire)

The agreements support two of ENGIE’s solar projects – Bernard Creek located in Wharton County, Texas and Chillingham Solar located in Bell County, Texas – for an aggregate of 282 megawatts (MW).

The new projects comprise one element of WestRock’s strategy to pursue a science-based target (SBT) to reduce Scope 1, 2 and 3 greenhouse gas emissions by 27.5% by 2030. Schneider Electric provided advisory services and strategy management for the WestRock and ENGIE agreements.

“We are pleased to play a role in the development of clean energy from large scale solar projects and to join forces with ENGIE and Schneider Electric to add more renewable energy to the grid,” said David B. Sewell, chief executive officer at WestRock.

WestRock will contract 207 MW from Bernard Creek, a 230 MW solar project which is located southwest of Houston and is expected to have an annual output of approximately 500,000 MWh. The project, slated for completion in the first half of 2024, is expected to generate more than $45 million in revenue for Wharton County over its lifespan and to create more than 250 jobs during construction.

Additionally, WestRock will contract 75 MW from ENGIE’s 350 MW Chillingham Solar project. Chillingham will help support two local school districts with an estimated $70 million in revenue generated over the life of the project, of which $53 million will be paid directly to the school districts. WestRock’s share of Chillingham is expected to be approximately 200,000 MWh per year.

“We are delighted that Bernard Creek and Chillingham Solar will support WestRock’s ambitions to meet their 2030 science-based targets. ENGIE’s projects are focused on meeting the specific needs of our clients as we work together to accelerate the energy transition in North America and this agreement reflects that,” said Dave Carroll, chief renewables officer and country manager, ENGIE North America.

These agreements with WestRock contribute to ENGIE’s continued innovation in renewables, which has resulted in the company being named top developer to sell corporate energy PPAs by BloombergNEF in its latest Market Outlook report and ranked in the top three since 2019. ENGIE’s total corporate PPA portfolio in the U.S. exceeds 7 GW.

According to John Powers, vice president, Global Renewable Energy and Carbon Advisory, Schneider Electric, “Through projects such as Bernard Creek and Chillingham Solar, innovative companies like ENGIE and WestRock are promoting clean energy to the grid while contributing to local communities through economic development, new job opportunities and a commitment to sustainable solutions.”

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About WestRock
WestRock (NYSE: WRK) partners with our customers to provide sustainable paper and packaging solutions that help them win in the marketplace. WestRock’s team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at www.westrock.com.

About ENGIE North America
Based in Houston, Texas, ENGIE North America Inc. is a regional hub of ENGIE (ENGI), a global leader in low-carbon energy and services. Together with 101,500 employees around the globe and ENGIE customers, partners and stakeholders, ENGIE is committed to accelerate the transition toward a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions.

About Schneider Electric
Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability. Schneider drives digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231114609659/en/

WestRock

Robby Johnson, Senior Manager, Corporate Communications

robby.b.johnson@westrock.com

ENGIE North America

Michael Clingan, Press Relations

Michael.clingan@external.engie.com

Source: WestRock Company

FAQ

What are the virtual power purchase agreements (VPPAs) between WestRock and ENGIE North America for?

The VPPAs are designed to add renewable energy to the U.S. energy grid and support WestRock's commitment to reduce greenhouse gas emissions.

Where are the solar projects supported by the agreements located?

The solar projects, Bernard Creek and Chillingham Solar, are located in Wharton County and Bell County, Texas, respectively.

What is the expected output of the Bernard Creek solar project?

The Bernard Creek solar project is expected to have an annual output of approximately 500,000 MWh.

Who provided advisory services and strategy management for the agreements?

Schneider Electric provided advisory services and strategy management for the WestRock and ENGIE agreements.

What is the expected impact of the solar projects on local communities?

The solar projects are expected to generate revenue for the local communities and create job opportunities during construction.