PepsiCo signs Renewables PPA with Iberdrola in Spain and Portugal

July 14, 2022
Iberdrola will supply green energy from its Francisco Pizarro solar photovoltaic plant to 11 PepsiCo facilities, including snacks and beverge production plants

Snack and beverage firm PepsiCo has signed a long-term Power Purchase Agreement with Spanish electric utility Iberdrola to supply 100% renewable electricity to the firm’s centers in Spain and Portugal.

The PPA will be effective in January 2023. Iberdrola will supply green energy from its future Francisco Pizarro solar photovoltaic plant to 11 PepsiCo facilities, including production plants in Spain (beverages in Álava, snacks in Burgos and gazpacho Alvalle in Murcia) and another snacks plant in Carregado (Portugal).

Renewable energy will also be supplied to two large logistics centers in Burgos and Valencia, sales offices in Vitoria, Pamplona, Palma de Mallorca and offices in Vitoria and Barcelona.

The Francisco Pizarro photovoltaic plant is under development and will be operational soon. The facility will prevent emissions of more than 150,000 tonnes of CO2 per year. It has 590 MW of installed capacity and can generate energy sufficient for 334,000 homes per year.

"We are proud to be part of the development of projects like this that are transforming our country's energy present and future and are fully aligned with our goal to reach net zero emissions by 2040," says Marta Puyuelo, Director of Corporate Affairs and Sustainability for PepsiCo Southwest Europe.

PepsiCo intends to reduce GHG emissions by over 40% by 2030 and reach net-zero emissions by 2040. It aims for a 75% reduction in Scope 1 and 2 emissions and a 40% reduction in Scope 3 emissions by 2030. Together the action is expected to result in a reduction of 26 million metric tons of GHG emissions.

As part of its efforts to achieve its goal, the firm intends to invest €150 billion by 2030 in renewable energies, electricity grids and energy storage. It already has over 38,300 MW of green power installed. 

In the U.S., PepsiCo Beverages North America (PBNA) announced it has acquired nearly 152 acres of land at the Denver High Point development area where it will build a state-of-the-art, 1.2 million square foot manufacturing facility (rendering pictured here). Set to open in 2023, the new facility will be PBNA's largest U.S. plant location.