Holcim US, a Chicago-based green building materials leader, has entered into its first virtual power purchase agreement (VPPA) linked to renewable energy generation.
The Electric Reliability Council of Texas (ERCOT) VPPA means that at least 38 percent of Holcim’s total power consumption at all of its production facilities in the state is now from wind generation.
The agreement complements the company’s ongoing investment in on-site renewable energy generation, participation in community solar farms and gains from electrical efficiency investments. Holcim US has set a goal of reaching net-zero operations by 2050.
“Holcim US is driving forward momentum to meet our green growth strategy goals by incorporating new technologies and processes at every level,” says Atl Martinez, vice president of procurement for Holcim North America. “We’re increasing the energy efficiency of our operations to use less energy while accomplishing more. From our largest cement plants to our aggregate sites, terminal sites and offices, we're looking at our full environmental impact and optimizing in every area we can.”
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The ERCOT VPPA agreement will annually generate 92,000 renewable energy credits that will go toward the firm’s de-carbonization goals. Renewable energy is generated from a wind farm in Coke County, Texas. The generation from this contract is equivalent to reducing about 143.7 million pounds of carbon dioxide (CO2) annually.
Through wind and solar contracts on the horizon, Holcim US is set to avoid an estimated 5 million metric tons of CO2 emissions through the terms of the contracts. That is equivalent to 12.5 billion miles driven by gasoline-powered cars or 5.5 billion pounds of coal burned.
Holcim US also generates on-site renewable energy in Paulding, Ohio, with three wind turbines generating up to 4.5 megawatts (MW) of power and in Hagerstown, Maryland, with a 10 MW solar array, which annually reduces CO2 emissions by 28 million pounds. In addition, a total of 68 MW worth of solar arrays are under contract in Colorado, Michigan and Arkansas, along with a 40 MW battery storage system in Colorado.
The renewable energy effort is one part of Holcim’s work toward the transition to net zero. It also offers low-carbon cement products and is transitioning to more electric vehicles in its fleet.
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