PepsiCo, Givaudan, Smurfit WestRock, and Statkraft have signed a 10-year Virtual Power Purchase Agreement (VPPA) linked to a repowering wind asset in Spain, marking a step in advancing renewable energy adoption across corporate value chains.
pep+ REnew Program
The agreement was structured under PepsiCo’s pep+ REnew program, with support from Schneider Electric’s SE Advisory Services. The initiative aggregated electricity demand from PepsiCo, Givaudan, and Smurfit WestRock, enabling access to long-term renewable energy opportunities.
Launched in 2022, the pep+ REnew platform has expanded to support more than 250 companies across multiple regions, with this VPPA marking its second completed cohort and first renewable electricity cohort in Europe.
Emissions Reduction and Climate Targets
The renewable electricity generated through the agreement is expected to reduce approximately 32,000 metric tons of CO₂ emissions annually. The deal aligns with PepsiCo’s updated 2030 climate targets, which include a 42 percent reduction in Scope 3 Energy & Industry emissions and a 30 percent reduction in Scope 3 Forest, Land & Agriculture (FLAG) emissions, based on a 2022 baseline.
These targets are part of the company’s broader pathway to achieve net-zero emissions by 2050 or earlier under the Science Based Targets initiative (SBTi) validation.
“This agreement with Statkraft is a further step forward in our journey to reduce emissions not only within our own operations but across our entire value chain,” said Archana Jagannathan, Chief Sustainability Officer for PepsiCo Europe, Middle East and Africa.
Wind Asset Repowering to Boost Efficiency
The project involves repowering an existing wind asset in Spain with more efficient turbines, increasing energy output while utilising existing grid infrastructure such as substations and interconnection points. This approach is expected to minimise environmental impact and accelerate renewable energy deployment.
Statkraft, one of Europe’s largest renewable energy producers, is supporting the initiative. The company generates electricity from hydropower, wind, solar, and gas, and is also active in global energy trading.
This marks PepsiCo’s second power purchase agreement in Spain, following an earlier project that went live in 2023. The development highlights growing collaboration across corporate value chains to scale renewable energy adoption and accelerate decarbonisation efforts globally.