Commercial, Solar - December 9, 2020
Nestlé makes its largest RE investment in Texas solar project
Nestlé announced Dec. 9 that it will be the sole tax equity investor for a new 250 MW solar project in Texas, from which it will purchase 100% of the renewable electricity attributes generated by the project’s energy production.
It is expected that the Taygete I Energy Project in Pecos County will generate 750,000 MWH per year for 15 years. This is the consumer foods company’s largest direct investment by capacity in a renewable energy project to date.
“Nestlé’s investment in Taygete I is an important milestone on our journey to achieve net zero by 2050. This is an aggressive goal, and to achieve it we are innovating across our company, from the ingredients we use, to the packaging that keeps our food and beverages safe, to how we make and transport our products,” Jim Wells, Chief Supply Chain Officer for Nestlé USA, said in a statement. “We are proud that our investment will expand the availability of renewable energy, adding enough solar electricity to the U.S. grid to power 90,000 homes each year. Also, with this step, we continue to be on track for a 35% GHG emissions reduction per tonne of product in our U.S. manufacturing facilities by the end of 2020.”
The solar project is now in its final energization phase and the project owner, 7X Energy, expects it to reach full commercial operation in early 2021. A portion of the energy generated from the project will also be sold through a long-term hedge agreement to J. Aron & Company and an S&P A-Rated entity.
Nestlé received financial advising for the deal through Marathon Capital, while CIT was the coordinating lead arranger and other lenders included Deutsche Bank, National Bank of Canada, CIBC, Rabobank and Amalgamated Bank.
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