Tate & Lyle PLC announced a major acceleration in its climate action with the signing of a long-term Power Purchase Agreement (PPA) in North America for renewable electricity and renewable energy credits (RECs) with clean energy leader Enel North America.
The 12-year PPA, which will commence this month, will deliver approximately 256,000 megawatt hours (MWh) of renewable electricity and associated RECs annually in North America from the Ranchland wind farm in Texas. This is expected to match all of Tate & Lyle's purchased electricity requirements for its manufacturing operations in North America, other than its McIntosh, Alabama facility which is covered by a separate renewable electricity agreement from its utility provider.
With this PPA supporting other renewable initiatives, 100% of the purchased electricity in Tate & Lyle's North American operations will now come from renewable sources. This will deliver more than an 80% reduction in Tate & Lyle's global Scope 2 greenhouse gas (GHG) emissions, and more than a 25% reduction in its Scope 1 and 2 GHG emissions from the 2019 baseline.
"This agreement represents a major step forward in delivering on our ambitious science-based climate targets, as well as a significant acceleration in the decarbonization of our operations as we work towards becoming a net zero business. Through this agreement, we will be able to significantly reduce the carbon footprint of our ingredients and support our customers to achieve their decarbonization goals," Nick Hampton, chief executive, Tate & Lyle said:
"We are delighted to have partnered with Enel on this Power Purchase Agreement, and to support the development of additional renewable energy in North America. This agreement represents another milestone in the delivery of our sustainability strategy and is a clear demonstration of our commitment to care for our planet and its natural resources for the benefit of future generations," added Anna Pierce, director of sustainability, Tate & Lyle.
This agreement is part of Tate & Lyle's broader sustainability program, which includes initiatives to reduce energy consumption, increase the use of renewable electricity and support sustainable agriculture. Tate & Lyle's climate targets are in line with a 1.5°C trajectory and have been approved by the Science Based Targets initiative.
