Packaging company WestRock Company (NYSE:WRK) said it has entered into two virtual power purchase agreements (VPPAs) with ENGIE North America (ENGIE), a subsidiary of ENGIE S.A. (OTC:ENGIY).
The agreements are designed to add renewable energy to the U.S. energy grid and mark a step forward in WestRock's commitment to reduce greenhouse gas emissions.
The agreements support two of ENGIE's solar projects, Bernard Creek located in Wharton County, Texas and Chillingham Solar located in Bell County, Texas, for an aggregate of 282 megawatts (MW).
The agreement is a part of WestRock's strategy to pursue a science-based target (SBT) to lessen Scope 1, 2 and 3 greenhouse gas emissions by 27.5% by 2030.
WestRock will contract 207 MW from Bernard Creek, and is expected to have an annual output of approximately 500,000 MWh.
The project is slated to be completed in the first half of 2024 and is expected to generate more than $45 million in total revenue for Wharton County, along with 250 jobs during construction.
Also, WestRock will contract 75 MW from ENGIE's 350 MW Chillingham Solar project.
Price Action: WRK shares are trading higher by 1.95% at $38.25 on the last check Tuesday.