Hartsville, South Carolina-based Sonoco Products Company (NYSE:SON), one of the largest global sustainable packaging companies, and Houston, Texas-based ENGIE North America said they have entered into a Virtual Power Purchase Agreement (“VPPA”) for production from ENGIE’s Big Sampson Wind Project, a wind power project under construction in Crockett County, Texas.
Under the VPPA and subject to certain conditions, Sonoco and ENGIE have agreed to contract for an estimated 140 megawatts of electricity per year, representing approximately 48 percent of Sonoco’s U.S. electricity consumption in 2025 and approximately 52 percent of the expected output capacity of Big Sampson, for 15 years beginning with Big Sampson’s entry into commercial operation.
Sonoco officials said the VPPA represents another step in the company’s integrated approach to corporate sustainability.
The officials said the company aims to reduce global Scope 1 and Scope 2 emissions by 25 percent by 2030 from a 2020 baseline through various corporate initiatives, including improved packaging design, installing energy-efficient equipment and procuring renewable energy sources.
They said the VPPA is an example of these efforts, with renewable energy credits acquired under the VPPA expected to help reduce Sonoco’s baseline carbon emissions by approximately 14 percent.
“Collaborative projects like Big Sampson have the potential to help us make progress toward our emissions targets while delivering clean, reliable power to the communities they serve,” said Elizabeth Rhue, Sonoco’s vice president of Environmental, Sustainability, & Technical Services.
The project is expected to be completed in late 2025 and will be an addition to ENGIE North America’s more than seven gigawatts of renewable energy production in operation or under construction across the United States and Canada.
The Big Sampson Wind Project is designed to consist of 60 wind turbines, each expected to have a generating capacity of 4.5 megawatts.
The project will employ roughly 400 skilled construction professionals and once operational, about 10 to 15 full-time professionals will support the system on-site.
In addition to jobs, Big Sampson is expected to provide long-term tax revenues for both Crocket County and local school districts of more than $60 million over the 15-year life of the project.
With net sales of approximately $6.8 billion in 2023, Sonoco has approximately 23,000 employees working in more than 300 operations around the world.
ENGIE North America Inc. is a regional hub of ENGIE (ENGI.PA), a global leader in low-carbon energy and services that is listed on the Paris and Brussels Stock Exchanges.