Scout Clean Energy, a Colorado-based solar developer, has inked a substantial 20-year virtual power purchase agreement (VPPA) with household product manufacturer Colgate-Palmolive. This agreement is poised to harness the energy generated from Scout Clean Energy's forthcoming 209MW Markum solar project located in Waco, Texas.
Set to come online in late 2024, the Markum solar project represents a noteworthy milestone for Scout Clean Energy as it marks their inaugural greenfield solar venture. The company, committed to overseeing the construction independently, is gearing up to commence construction during the upcoming Autumn season.
Under the terms of the agreement, the power generated at the Markum solar facility will be channeled into Texas' Electric Reliability Council of Texas (ERCOT) transmission network, aligning with the state's renewable energy goals.
CEO and founder of Scout Clean Energy, Michael Rucker, expressed his enthusiasm for the project, stating, “With the PPA and construction contracts executed, we are extremely excited to move forward with the 209MW Markum Solar project. These contracts provide Scout the certainty to build our first solar project.”
Colgate-Palmolive, on the other hand, views VPPAs as integral to their overarching renewable energy strategy. Ann Tracy, the Chief Sustainability Officer at Colgate-Palmolive, emphasized, “VPPAs are a valuable part of our renewable energy master plan and will help us achieve our targets of net-zero carbon emissions by 2040 and 100% renewable electricity across our global operations by 2030.”
Scout Clean Energy operates as a subsidiary of Brookfield Renewable, a major player in the renewable energy sector and one of the largest owners of renewable energy assets in the United States. This strategic acquisition took place in September of the previous year, with the transaction's value estimated at approximately US$2 billion.
Notably, Brookfield Renewable has unveiled ambitious plans to commission a staggering 18GW of renewable energy projects over the next three years across its extensive asset portfolio. The company is particularly keen on tapping into the burgeoning market for corporate power purchase agreements (PPAs), exemplified by the recent agreement with Colgate-Palmolive. In June, Brookfield made headlines with its acquisition of the renewables development division of utility giant Duke Energy for a staggering US$2.8 billion. Moreover, in March, the company further expanded its reach by acquiring both Australian Origin Energy and European developer X-Elio, the latter from fellow investor KKR.
