Saputo signs large-scale virtual power purchase agreement with Capital Power

MONTRÉAL, March 27, 2024 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) today announced it has entered into a 15-year virtual power purchase agreement (VPPA) with Capital Power (TSX: CPX), a North American power producer. The long-term commitment, supported by energy procurement advisor Schneider Electric, marks a key milestone in Saputo’s sustainability efforts, as it will allow the Company to make significant strides towards its climate target for 2025 and future environmental goals.

The agreement pertains to a Canadian-based wind facility (Halkirk 2 Wind) currently under construction. Subject to final regulatory approvals and once operational, the portion of the wind facility contracted by Saputo will generate approximately 206,300 MWh of renewable electricity per year, reducing the Company’s CO₂ emissions by more than 140,000 tonnes – equivalent to taking more than 30,000 cars off the road. The new VPPA will ultimately cut down Saputo’s global CO₂ footprint by 13 per cent (against its fiscal 2020 baseline).

Saputo has been working hard to address climate change since making its Environmental Pledges public in 2020. The Company has invested $70 million in capital to fund more than 65 projects to reduce the carbon, energy, and water intensities of its operations, in addition to signing another long-term power purchase agreement in Australia in 2021.

In the coming months, the Company will be planning its post-2025 climate commitments and targets aligned with the Science-based Targets initiative (SBTi) guidance. Saputo will continue to work with farmers, milk suppliers, and industry experts to address climate change and ensure the responsible production of dairy ingredients.

“As a global leader in the food industry, it is vital we demonstrate our commitment to the long-term sustainability of the dairy industry,” said Carl Colizza, President and Chief Operating Officer (North America). “This VPPA is an important step in sourcing clean, renewable electricity to reduce the carbon footprint of our operations, so that we may play our part as a sustainable dairy processor and safeguard the environment for future generations.”

“We are pleased to collaborate with industry leaders such as Saputo and Schneider Electric in delivering reliable, affordable, and decarbonized energy to our North American customer base,” said Jason Comandante, Senior Vice President, Head of Canada for Capital Power. “Through this agreement, we are again able to showcase our ability to collaborate and innovate, creating mutually beneficial partnerships to reduce emissions and support achieving broader climate change targets.”