In a visionary move towards sustainable energy, Crown Holdings, Inc. has forged a pioneering 15-year Virtual Power Purchase Agreement (VPPA) with Enel Green Power España (EGPE), the renewable energy arm of Endesa. This exemplary VPPA marks a significant leap for Crown, securing renewable electricity from a cutting-edge PV project nestled in the sun-kissed lands of Badajoz, Spain.
About the agreement
This landmark agreement is set to envelop the Crown's current operational presence across European countries within the esteemed Alliance of Issuing Bodies (AIB). This alliance is the custodian of the European Energy Certificate System, offering Crown an unprecedented pathway to propel its ambitious Twentyby30 sustainability program to new heights.
By entering into this VPPA, Crown is taking a substantial step forward in its Twentyby30 sustainability program, demonstrating its dedication to responsible energy sourcing and corporate stewardship. The PV project in Badajoz, Spain, will be pivotal in helping Crown achieve its overarching sustainability objectives.
"Covering our energy consumption in the EU serves as a milestone achievement for our organisation. 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," said John Rost, Senior Vice President – Corporate Technology, Sustainability and Regulatory Affairs.
Crown partnered with Schneider Electric
In collaborating on this initiative, Crown partnered with Schneider Electric, a renowned leader advising companies on corporate renewable energy procurement and carbon management. Schneider Electric's expertise was instrumental in guiding Crown through the project selection process and negotiating the VPPA, ensuring that the agreement aligns with Crown's sustainability goals and contributes positively to its environmental footprint.
As per AL Circle's recently curated report, "Global ALuminium Industry Outlook 2024 ", in response to global trends, there is a heightened emphasis on sustainability within the aluminium sector, focusing on adopting cleaner technologies and utilising renewable energy sources. The International Aluminium Institute (IAI) estimates that the demand for aluminium in the renewable energy sector will grow by 6 per cent annually between now and 2050.
Crown's latest agreement marks its inaugural VPPA venture in Europe, highlighting its unwavering dedication to curbing greenhouse gas emissions and championing local action. Anticipated to generate an annual output of 285,100 Megawatt hours (MWh), with Crown securing contracts for approximately 70 per cent, this initiative is poised to offset CO2 emissions equivalent to the annual electricity consumption of nearly 40,000 homes. Operational commencement is slated for October 2025, with the renewable energy supply stemming from the PV power plant as part of Crown's ongoing efforts to advance decarbonisation and sustainability objectives.
2020 - Milestone
Back in 2020, Crown achieved a significant milestone by becoming the first metal packaging manufacturer to transition to 100 per cent renewable electricity across its U.S. and Canadian beverage can plants through a VPPA executed in Texas. Harnessing wind power, this groundbreaking project was projected to mitigate over 310,000 metric tons of carbon emissions annually—a feat on par with removing at least 67,000 passenger vehicles from the roads for one year.
Renewable energy stands as a cornerstone of Crown's sustainability strategy. Upon its launch, the PV project VPPA is set to make a direct impact towards achieving Crown's Twentyby30 program's Science Based Targets initiative (SBTi)-endorsed objective. This initiative aims to reach 75 per cent renewable energy by 2030, with a further ambition to attain 100 per cent by 2040.
"Crown stands as a leader in the packaging industry's decarbonisation efforts, showing a strong commitment to sustainability. We're proud to have facilitated this pivotal agreement between Crown and EGPE, which significantly advances Crown's environmental and sustainability initiatives," said John Powers, VP Global Renewables at Schneider Electric.
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