Cargill announced this week a virtual power purchase agreement (VPPA) with developer Geronimo Energy. Through the agreement, Cargill will buy 50 megawatts (MW) of wind power from Geronimo Energy’s 200 MW Crocker Wind Farm project, which is currently under construction in Clark County, S.D. The wind energy will be used to help partially offset the impact of Cargill’s Midwest operations.

The agreement supports Cargill’s commitment to increase its use of renewable energy sources and reduce greenhouse gas (GHG) emissions. Cargill has committed to reduce absolute GHG emissions in company operations 10% by 2025 against a 2017 baseline. This VPPA will deliver approximately 10% of that energy target.

“Cargill is a strong and outspoken advocate for climate action. We cannot ignore the impact of a changing climate on our global food system. We believe business has a critical role to play. That’s why we are investing in renewable energy to reduce emissions from our company’s operations while contributing to the renewable economy,” Jill Kolling, Cargill global sustainability leader, said. “Long-term purchase agreements like this one with Geronimo Energy allow Cargill to leverage our scale to accelerate the production of renewable energy.”

Cargill’s VPPA with Geronimo Energy represents 25% of the wind farm’s capacity. Walmart has signed a related VPPA to purchase 150 MW – the remaining 75% – from Geronimo’s Crocker project.

“Walmart has a goal to be supplied by 100% renewable energy, and sourcing from wind energy projects like the Crocker Wind Farm project will be a core component in the mix,” said Mark Vanderhelm, vice president of energy for Walmart. “The energy we’ll procure from this facility represents an important leap forward on our renewable energy journey.”

The Crocker Wind Farm is expected to begin producing power at the end of 2019. Cargill has agreed to purchase power through the VPPA for 12 years. Geronimo will own and operate the renewable energy systems. By committing to purchase renewable power through long-term agreements, Cargill is providing a predictable stream of income to support the development of significant renewable energy capacity. These commitments allow the project to be built with lower-cost financing and deliver energy at highly competitive prices.

Wind energy is one of 15 renewable energy sources used by Cargill facilities around the world. More than 100 Cargill locations worldwide utilize renewable energy, which represents 15% of the company’s power usage. Use of renewables is just one way Cargill is continuing to reduce GHG emissions from its operations, the company said.

Cargill set its first energy efficiency target in 2000 and continues to advance its commitments so that, as the company grows, emissions will go down. In 2015, Cargill stood alongside a handful of large multinational companies to reaffirm their commitments to reduce GHG emissions through the American Business Act on Climate Change. In 2017, Cargill signed an open letter to the U.S. Administration stating that it and other signatories are “still in” on combating climate change.

“We will continue to look for opportunities to drive efficiencies, accelerate progress and invest in renewable energy to reduce GHG emissions from our operations. It’s the right thing to do for our company and for our planet,” Kolling said.