PepsiCo has joined forces with Givaudan and Smurfit WestRock to sign a 10-year Virtual Power Purchase Agreement (VPPA) with Statkraft, the European leader in renewable energy. The deal, which involves a wind asset undergoing repowering in Spain, marks the first European supply chain cohort under PepsiCo’s “pep+ REnew” programme.
The collaboration, structured by Schneider Electric’s SE Advisory Services, allows the three companies to aggregate their electricity demand. By pooling their requirements, the partners secured favourable commercial terms and long-term renewable energy access that is typically reserved for the world’s largest corporate buyers.
The agreement is expected to reduce carbon dioxide emissions by an estimated 32,000 metric tons per year.
“This agreement with Statkraft is a further step forward in our journey to reduce emissions not only within our own operations but across our entire value chain,” said Archana Jagannathan, Chief Sustainability Officer at PepsiCo Europe, Middle East and Africa. “Collaborations like this demonstrate how action with stakeholders across the value chain can help drive meaningful change.”
The underlying wind asset in Spain will be “repowered,” a process that involves replacing older turbines with more efficient, modern models. This strategy increases renewable output while reusing existing grid infrastructure, such as substations, thereby minimising environmental impact and speeding up the delivery of clean power to the grid.
Hallvard Grandheim, EVP Markets at Statkraft, noted: “This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact. Statkraft is delighted to support a coalition that brings additional renewable capacity online.”
For PepsiCo, the move is a key component of its “PepsiCo Positive” (pep+) strategy, which targets a 42% reduction in Scope 3 Energy & Industry emissions by 2030. The “pep+ REnew” platform, launched in 2022, now supports over 250 companies globally in their transition to cleaner energy.
Willem Mutsaerts, Head of Global Procurement and Sustainability at Givaudan, highlighted the importance of customer-supplier alignment: “By joining forces on renewable electricity in this way, we are translating shared ambitions into tangible climate action, helping power our progress toward a low-carbon future.”
John Powers, Vice President of Strategic Renewables at Schneider Electric, added that pairing market expertise with PepsiCo’s engagement model is “accelerating decarbonisation across global value chains.”
This marks PepsiCo’s second PPA in Spain, following a 2023 agreement, as the company seeks to scale net-zero solutions across its European operations.
