German pharmaceutical giant Bayer has signed a long-term structured renewable energy credit purchase agreement with Idaho-based renewable energy firm Cat Creek Energy (CCE).
According to Bayer, this agreement will satisfy 40 percent of its global and 60 percent of its U.S.-purchased electricity demand from renewable sources.
Under the deal, CCE will construct multiple variable renewable energy resources plus energy storage facilities in Idaho, generating a total of 1.4 terawatt hours (tWh) of clean electricity per year. This amount of energy is equivalent to the energy consumption of 150,000 households.
The agreement will also enable Bayer to claim offsets on annual CO2 emissions by 370,000 tons, roughly equivalent to the emissions of 270,000 mid-sized cars or the amount that 31.7 million trees can bind annually.
“As an innovation-driven company, Bayer recognizes the need to introduce renewable energy solutions that are healthier for the planet and healthier for humans,” said Matthias Berninger, EVP of Public Affairs, Science, Sustainability and HSE at Bayer. “This project with Cat Creek Energy is exciting because it catapults our energy goal target fulfilments while also supporting Idaho, a state many of our employees call home.”
Bayer’s P4 unit operates phosphate and phosphorous mining close to Soda Springs, Idaho.
Under many clean power purchase agreements, the customer does not actually receive the renewable energy directly but helps invest in the project’s deployment onto the main grid.
The renewable energy projects will contribute to Idaho’s conversion move towards dependable, sustainable energy by 2045. The projects are expected to bring in more than $1.5 billion worth of new electrical infrastructure, generate hundreds of jobs, and provide millions of dollars in annual tax revenues for counties and schools where they are situated.
Construction of these projects is planned to commence in the third quarter of this year.
CCE is developing large volume long duration storage through its Pumped Storage Hydro project. Under the deal with Bayer, CCE will install battery storage with a nameplate capacity of 160 MW to enhance the reliability and stability of the regional transmission grid.
Bayer says it is dedicated to reducing greenhouse gas (GHG) emissions throughout its entire value chain, in line with the United Nations Sustainable Development Goals and the Paris Agreement’s objective to limit global warming to 1.5 degrees Celsius by 2050. It also aims to achieve climate neutrality in its operations by 2030.
One of Bayer’s key strategies to meet its reduction targets is to source 100 percent sustainable renewable electricity by 2030, a target that has been approved by the Science Based Targets initiative.
In the U.S., Bayer’s key focuses are on pharmaceuticals and agriculture. The company also has American operations in California, Hawaii, Texas, Arizona and Puerto Rico.