Ball Corporation (NYSE: BALL) announced it has entered into a virtual power purchase agreement (VPPA) in which Ball will purchase 151 megawatts of new wind energy from a subsidiary of NextEra Energy Resources, LLC, the world's largest generator of renewable energy from the wind and sun. The wind energy center will be located in west Texas and Ball's portion of the project is expected to produce 600,000 megawatt hours of clean energy annually, enough to address the electricity load of nearly half of Ball's North Americamanufacturing facilities.
The wind energy center, which will be owned and operated by a subsidiary of NextEra Energy Resources, will support Ball's ambition to achieve its 2030 science-based targets and net-zero emissions prior to 2050. The wind energy center is expected to reduce Ball's global Scope 2 greenhouse gas emissions by approximately 30%. That's equivalent to the carbon reduction of removing 91,000 gasoline-powered passenger vehicles from the road annually.
"At Ball, we believe progress requires transparency. As we grow our business to meet the demand for infinitely recyclable aluminum beverage packaging, we remain committed to our goals of cutting our operational emissions and reducing the carbon footprint of our aluminum packaging," said Dennis Schuilenburg, Chief Commercial and Sustainability Officer at Ball. "Our lifecycle analysis study shows that using renewable electricity in can manufacturing can reduce the carbon footprint of an aluminum beverage can by up to 18% which in turn helps our customers with their sustainability goals."
The wind energy center adds to Ball's previous wind agreements in the United States, Sweden and Spain where electricity produced from these projects allowed the company to source 44% of its global electricity demand in 2021 from renewables. Ball aims to obtain 100% renewable electricity globally by 2030, with an interim target of 75% by 2025. With the addition of this wind energy Ball estimates it will be 65% of the way there by 2024.
"We're pleased to work with Ball and it's great to see the company incorporate wind energy as an important part of its sustainability strategy," said Matt Handel, senior vice president of development for NextEra Energy Resources. "This wind energy center will also create significant economic stimulus for the local community, creating good jobs and additional tax revenue."
Construction on the wind energy center is underway and it is expected to begin supplying power starting in 2023. Ball was advised on the agreement by Schneider Electric Energy and Sustainability Services, who assisted the company in its project selection and negotiations.
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