Scout Clean Energy, a renewable energy company, has signed a 12-year Virtual Power Purchase Agreement (VPPA) with Zoetis Inc. for a 50 MW portion of Scout’s operating Heart of Texas Wind Farm. This represents over one-fourth of the 180 MW project’s total capacity.
The VPPA is part of Zoetis’ plan to achieve carbon neutrality in its operations by 2030. The 12-year contract will secure renewable energy and generate Renewable Energy Certificates to help reduce Zoetis’ emissions under the RE100 initiative.
The Heart of Texas Wind Farm, located in McCulloch County, was constructed in 2020 and is owned and operated by Scout, a portfolio company managed by Brookfield Asset Management. The project supports the local economy through tax incentive agreements with county and school district entities.
REGlobal’s Views: Zoetis is an animal health company and is pursuing carbon neutrality in its operations by 2030. The company, like many other corporates, is focusing on procuring more renewables to not only reduce its carbon emissions but also attract more conscious customers. Further, in many parts of the world, including in the US, renewable energy has become increasingly more cost-effective when compared to fossil fuel-based power. Thus, such renewable-based VPPAs help the company to secure affordable power and also ensure its energy security.
