PepsiCo secures 10-year renewable energy agreement with Statkraft to advance value chain decarbonization across Europe
The landmark deal marks a significant step in cross-industry collaboration to drive clean energy adoption across the European supply chain.
EUROPE – PepsiCo, in collaboration with strategic partners Givaudan and Smurfit WestRock, has signed a landmark 10-year Virtual Power Purchase Agreement (VPPA) with Statkraft, Europe’s largest producer of renewable energy.
The agreement, announced in late April 2026, marks a significant milestone in the “pep+ REnew” program, representing the first renewable electricity cohort of its kind in Europe.
By aggregating energy demand across three major players in the food, fragrance, and packaging sectors, the consortium has secured long-term access to clean energy that would typically be reserved for the world’s largest individual buyers.
The clean electricity generated under this deal will be sourced from a wind energy asset in Spain that is currently undergoing a comprehensive “repowering” process.
This modernization involves replacing older turbines with more efficient, state-of-the-art models, thereby increasing the site’s total renewable output while utilizing existing grid infrastructure such as substations and interconnection points.
This approach not only speeds up the deployment of additional green power but also minimizes the environmental footprint of new construction.
Collectively, the project is expected to slash carbon dioxide (CO₂) emissions by approximately 32,000 metric tons annually, equivalent to removing thousands of internal combustion vehicles from European roads.
For PepsiCo, the agreement is a core component of its “PepsiCo Positive” (pep+) transformation strategy.
Archana Jagannathan, Chief Sustainability Officer for PepsiCo Europe, Middle East and Africa, noted that the deal is a “further step forward” in reducing emissions across the entire value chain, rather than just within the company’s direct operations.
By acting as the lead buyer and bringing suppliers into the fold, PepsiCo is actively addressing its Scope 3 emissions.
The company has set ambitious 2030 climate goals, targeting a 42% reduction in Scope 3 Energy and Industry emissions and a 30% reduction in Scope 3 Forest, Land, and Agriculture emissions.
This project is PepsiCo’s second power purchase agreement in Spain; the first went live in 2023, further underscoring the company’s aim to accelerate clean energy deployment across key markets.
The deal was structured with the support of SE Advisory Services, Schneider Electric’s global consulting practice, which helped aggregate the energy loads of Givaudan and Smurfit WestRock.
Leaders from both supplier companies highlighted the partnership as a gold standard for corporate climate action.
This collective procurement model sets a new blueprint for industrial decarbonization in Europe, demonstrating that alignment between major corporations and their value chain partners can drive meaningful, large-scale change.
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