Italy’s Enel to sell green power to Kellogg in virtual wind farm deal

Europe’s biggest utility Enel has agreed to sell 360 gigawatt hours of green power a year to Kellogg Company to help the U.S. food giant reach climate targets.

The two companies said on Wednesday they had signed a 100 megawatt virtual power purchase agreement (VPPA) for electricity delivered into the grid from Enel’s Azure Sky wind-and-storage project in Texas.

The amount is equal to half the electricity used by Kellogg in its manufacturing facilities across North America.

The food producer, which is committed to having 100% green energy in its operations by 2050, said the deal would help it reach 50% of its global Better Days goal to reduce its Scope 1 and 2 greenhouse gas emissions by 65%.

“This… demonstrates to investors, stakeholders and our consumers that we are taking swift action to address climate change,” Kellogg’s Chief Sustainability Officer Amy Senter said.

VPPAs are increasingly used by U.S. companies to bolster their green credentials and lock in prices for their energy.

Supporters believe they can help accelerate a broader shift to clean energy sources by funding projects.

Enel’s 350 MW wind farm in Texas, coupled with some 137 MW of battery storage, is the Italian utility’s third hybrid project in the United States and will start operation in the first half of next year.