Henkel Signs VPPA for New Texas Wind Farm


Henkel, a German chemical and consumer goods company, has signed a large-scale virtual power purchase agreement (VPPA) for new wind power in Bee County, Texas. 

The agreed capacity equals 100% of the electricity demand of Henkel’s operations in the U.S., which comprise more than 30 production sites across the country. The long-term commitment contributes to increasing the share of renewable energy in the grid and supports Henkel in reaching its climate protection targets.

In order to reach its goal to source 100% renewable electricity for its production sites by 2030, Henkel follows a combination of on-site production of green energy, direct purchase and virtual coverage. This involves, for example, entering into long-term VPPAs that feed power from specific renewable energy plants into the supply grid – in an amount that is equal to the amount consumed. Thus, Henkel contributes to creating additional renewable energy generation capacity by way of its green power purchase.

“At Henkel, we want to make a positive contribution to climate protection and further accelerate our efforts,” says Sylvie Nicol, a member of the management board at Henkel. “Based on our strong achievements, we have reaffirmed our commitment to become climate-positive by 2040. The power purchase agreement demonstrates how we can drive tangible progress towards achieving our ambitious targets.” 

Henkel’s VPPA in the U.S. is connected to a new wind power project, which is being developed by Ørsted

With an overall production of around 600,000 MWh per year, the wind farm is scheduled to be connected to the grid in early 2022. Henkel’s agreement comprises half of the wind farm’s electricity capacity at fixed terms over a period of more than 10 years. Henkel was advised on the VPPA by Schneider Electric Energy & Sustainability Services.  

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