Ball Corporation Enters Agreement for New Wind Energy to Strengthen North American Renewable Energy Transition
May 16, 2022
Marks the fourth global wind development supporting the company's renewable energy and carbon reduction targets
WESTMINSTER, Colo., May 16, 2022 /PRNewswire/ -- Ball Corporation (NYSE: BALL) today announced it has entered into a virtual power purchase agreement (VPPA) in which Ball will purchase 151 megawatts of new wind energy from a subsidiary of NextEra Energy Resources, LLC, the world's largest generator of renewable energy from the wind and sun. The wind energy center will be located in west Texas and Ball's portion of the project is expected to produce 600,000 megawatt hours of clean energy annually, enough to address the electricity load of nearly half of Ball's North America manufacturing facilities.
The wind energy center, which will be owned and operated by a subsidiary of NextEra Energy Resources, will support Ball's ambition to achieve its 2030 science-based targets and net-zero emissions prior to 2050. The wind energy center is expected to reduce Ball's global Scope 2 greenhouse gas emissions by approximately 30%. That's equivalent to the carbon reduction of removing 91,000 gasoline-powered passenger vehicles from the road annually.
"At Ball, we believe progress requires transparency. As we grow our business to meet the demand for infinitely recyclable aluminum beverage packaging, we remain committed to our goals of cutting our operational emissions and reducing the carbon footprint of our aluminum packaging," said Dennis Schuilenburg, Chief Commercial and Sustainability Officer at Ball. "Our lifecycle analysis study shows that using renewable electricity in can manufacturing can reduce the carbon footprint of an aluminum beverage can by up to 18% which in turn helps our customers with their sustainability goals."
The wind energy center adds to Ball's previous wind agreements in the United States, Sweden and Spain where electricity produced from these projects allowed the company to source 44% of its global electricity demand in 2021 from renewables. Ball aims to obtain 100% renewable electricity globally by 2030, with an interim target of 75% by 2025. With the addition of this wind energy Ball estimates it will be 65% of the way there by 2024.
"We're pleased to work with Ball and it's great to see the company incorporate wind energy as an important part of its sustainability strategy," said Matt Handel, senior vice president of development for NextEra Energy Resources. "This wind energy center will also create significant economic stimulus for the local community, creating good jobs and additional tax revenue."
Construction on the wind energy center is underway and it is expected to begin supplying power starting in 2023. Ball was advised on the agreement by Schneider Electric Energy and Sustainability Services, who assisted the company in its project selection and negotiations.
About Ball Corporation
Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products for customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 24,300 people worldwide and reported 2021 net sales of $13.8 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
This report contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Additional factors that might affect: a) our packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on our supply chain and our ability to operate in Russia and the EMEA region generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and shelter-in-place orders in any country or jurisdiction affecting goods produced by us or in our supply chain, including imported raw materials; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the Company as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, ESG reporting, competition, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of the Company's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting our debt; and successful or unsuccessful joint ventures, acquisitions and divestitures, including the announced sale of our Russian business, and their effects on our operating results and business generally.
SOURCE Ball Corporation