Tate & Lyle significantly accelerates climate action through new Power Purchase Agreement in North America. Agreement to deliver large reduction in Tate & Lyle’s global Scope 2 greenhouse gas emissions.
LONDON, UNITED KINGDOM, 30 September 2024: Tate & Lyle PLC (Tate & Lyle), a world leader in ingredient solutions for healthier food and beverages, announces a major acceleration in its climate action with the signing of a long-term Power Purchase Agreement (PPA)1 in North America for renewable electricity and renewable energy credits (RECs) with clean energy leader Enel North America.
The 12-year PPA, which will commence in October, will deliver approximately 256,000 megawatt hours (MWh) of renewable electricity and associated RECs annually in North America from the Ranchland wind farm in Texas. This is expected to match all of Tate & Lyle’s purchased electricity requirements for its manufacturing operations in North America, other than its McIntosh, Alabama facility which is covered by a separate renewable electricity agreement from its utility provider2.
With this PPA supporting other renewable initiatives, 100% of the purchased electricity in Tate & Lyle’s North American operations will now come from renewable sources. This will deliver more than an 80% reduction in Tate & Lyle’s global Scope 2 greenhouse gas (GHG) emissions, and more than a 25% reduction in its Scope 1 and 2 GHG emissions from the 2019 baseline.
Nick Hampton, Chief Executive, Tate & Lyle said:
“This agreement represents a major step forward in delivering on our ambitious science based climate targets, as well as a significant acceleration in the decarbonisation of our operations as we work towards becoming a net zero business. Through this agreement, we will be able to significantly reduce the carbon footprint of our ingredients and support our customers to achieve their decarbonisation goals.”
Anna Pierce, Director of Sustainability, Tate & Lyle said:
“We are delighted to have partnered with Enel on this Power Purchase Agreement, and to support the development of additional renewable energy in North America. This agreement represents another milestone in the delivery of our sustainability strategy and is a clear demonstration of our commitment to care for our planet and its natural resources for the benefit of future generations.”
This agreement is part of Tate & Lyle’s broader sustainability programme which includes initiatives to reduce energy consumption, increase the use of renewable electricity and support sustainable agriculture. Tate & Lyle’s climate targets are in line with a 1.5°C trajectory and have been approved by the Science Based Targets initiative. For more information on Tate & Lyle’s approach to climate action and its performance, visit https://www.tateandlyle.com/purpose.
1PPAs are long-term contracts for power between a buyer and a power project developer and are an effective way for companies to purchase wind or solar power at scale. The PPA with Enel was brokered for Tate & Lyle by NRG Trading Advisors, a leading PPA marketplace solution provider.
2Alabama Power
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About Tate & Lyle:
Supported by our 160-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients every day.
Through our expertise in sweetening, fortification, and texture, we develop ingredient solutions which reduce sugar, calories, and fat, add fibre and protein, and provide texture and stability in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
We have more than 3,300 employees working in around 58 locations in 39 countries, serving customers across 121 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives Through the Science of Food. By living our purpose we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2024, Tate & Lyle revenue from continuing operations totalled £1.65 billion. For more information, please visit https://www.tateandlyle.com or follow Tate & Lyle on LinkedIn, X (Twitter), Facebook or YouTube.