Kellogg’s Australia has signed a power purchase agreement (PPA) with Beryl Solar Farm to generate the equivalent of 100 per cent of the forecast energy requirements of Kellogg’s manufacturing operation in New South Wales (NSW).
Developed and operated by First Solar, Beryl Solar Farm is owned by New Energy Solar.
The agreement allows Kellogg’s to offset the energy generation carbon impact of its Australian manufacturing operations for the next seven-and-a-half years. Based on 2018 production data, the PPA would offset the amount of energy needed to produce an estimated 630 million boxes of Australian-made cereals for the duration of the PPA. The power plant is situated in the central west of NSW and contributes power directly into the National Electricity Market from which Kellogg’s acquires power.
Significantly, the PPA will assist in delivering Kellogg’s broader sustainability commitments by displacing an estimated 139,000 tonnes of carbon dioxide emissions over the life of the agreement, which it traditionally created.
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The volume of electricity generated under the PPA and the volume of LGCs sold to Kellogg’s will represent approximately 29 per cent of Beryl Solar Farm’s production for 2019, with volumes in later years based on Kellogg’s anticipated electricity requirements.
Kellogg’s Australia & New Zealand managing director Esme Borgelt said, “We live in a country that is experiencing firsthand the effects of a changing and unpredictable climate, and, as a business that manufactures in Australia, we have a responsibility to reduce our impact on the environment.
“We’re doing that through both continuous improvements in manufacturing to reduce our energy demand and developing innovative partnerships that help increase the available renewable energy in the system.”
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New Energy Solar CEO and managing director John Martin said the deal demonstrates the appetite of Australian corporates for renewable power.
The recently commissioned facility is located approximately seven kilometres west of Gulgong, NSW. During its construction, the project provided economic and environmental benefits locally and regionally. In addition to creating direct and indirect jobs during its construction, the project helped develop skills in a growing industry and supported small businesses.
Ernst & Young was Kellogg’s Australia’s lead commercial and financial adviser on the transaction.