Holcim US inks wind VPPA with ERCOT

Holcim US, part of Swiss building materials group Holcim AG (SWX:HOLN), said that it has signed a virtual power purchase agreement (VPPA) with Texas' grid operator ERCOT to obtain renewable energy credits (RECs).

Under the agreement, a wind farm in Coke County, Texas, will generate electricity, while Holcim US will receive 92,000 RECs per year that will count towards its decarbonisation goals. As a result, wind power will account for at least 38% of the Holcim's total electricity consumption at all of its production facilities in Texas, the company said.

Holcim’s US unit has set a goal to reach 100% renewable energy across its operations in the country. The VPPA with ERCOT comes on top of the company's efforts to generate renewable power from on-site wind turbines and solar arrays at its facilities, and investments in solar contracts and electrical efficiency measures.

With wind and solar contracts on the horizon, Holcim US estimates that it will be able to avoid some 5 million metric tonnes of CO2 emission through the terms of the contracts, the company said.

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