Behind Pepsi, Givaudan & Smurfit WestRock's New 10-Year VPPA

​​​​​​​PepsiCo, Givaudan, Smurfit WestRock and Statkraft have entered into a 10-year Virtual Power Purchase Agreement (VPPA), centred on expanding renewable electricity capacity and accelerating corporate decarbonisation across Europe.

The agreement will underpin the repowering of an existing wind asset in Spain, reinforcing long-term clean energy supply while supporting each company’s transition towards net zero.

Scaling renewable electricity through long-term agreements

At the core of the deal is a Spanish wind farm currently undergoing repowering, a process that replaces older turbines with newer, higher-capacity technology to increase output without requiring new grid connections.

The VPPA structure enables the companies to secure renewable power virtually, supporting grid decarbonisation while advancing their own climate strategies.

PepsiCo partnered with SE Advisory Services, Schneider Electric’s global consulting division, through its pep+ REnew programme to design and execute the agreement.

The advisory facilitated demand aggregation across PepsiCo, Givaudan and Smurfit WestRock, enabling access to large-scale renewable energy procurement that might otherwise be out of reach individually.

“By pairing our market expertise with PepsiCo’s supplier engagement model, we’re accelerating decarbonisation across global value chains,” says John Powers, Vice President of Strategic Renewables at Schneider Electric.

The project is expected to deliver around 32,000 tonnes of CO₂ emissions reductions annually, highlighting the growing role of aggregated PPAs in corporate energy strategies.

Advancing supply chain decarbonisation

The VPPA forms part of PepsiCo’s pep+ REnew programme, which focuses on enabling suppliers, bottlers and partners to transition to renewable electricity.

“This agreement with Statkraft is a further step forward in our journey to reduce emissions not only within our own operations but across our entire value chain,” says Archana Jagannathan, Chief Sustainability Officer, PepsiCo Europe, Middle East and Africa.

“By collaborating with PepsiCo’s value chain, we aim to expand access to renewable energy solutions, support the transition to cleaner power, and accelerate progress toward our climate goals.

“Collaborations like this demonstrate how action with stakeholders across the value chain and long‑term ambitions can help drive meaningful change for our business, members of our value chain, and the planet.”

PepsiCo acted as the lead buyer in the agreement, with Givaudan and Smurfit WestRock contributing to aggregated demand for renewable electricity.

“As a global leader in paper-based packaging, we are working towards a net-zero future," says Edwin Goffard, President of Corrugated and Consumer Packaging Europe, at Smurfit WestRock.

"This agreement shows how our commitment to clean energy is helping power real and tangible progress. By adding renewable electricity to the power grid and supporting local economic development, this is another step forward on our sustainability journey."

Expanding renewable procurement platforms

Since its launch in 2022, pep+ REnew has evolved into a global platform supporting more than 250 companies across North America, Latin America, Europe and APAC.

This VPPA represents both the programme’s second completed cohort and its first renewable electricity cohort in Europe, signalling growing momentum for collaborative energy procurement in the region.

PepsiCo has also updated its 2030 climate targets under pep+, using a 2022 baseline. The company is targeting a 42% reduction in Scope 3 energy and industry emissions, alongside a 30% cut in forest, land and agriculture Scope 3 emissions.

These targets align with its Science Based Targets initiative-validated pathway to reach net-zero emissions by 2050.

“This agreement is a compelling example of how we are bringing to life sustainable growth with customers,” says Willem Mutsaerts, Head of Global Procurement and Sustainability at Givaudan.

By joining forces on renewable electricity in this way, we are translating shared ambitions into tangible climate action, helping power our progress toward a low‑carbon future.

“Collaboration of this kind lies at the heart of Givaudan’s 2030 strategy, demonstrating how working hand‑in‑hand with customers and partners can accelerate change that delivers benefits throughout the value chain.”

Repowering wind assets to boost capacity

The Spanish wind project will be upgraded with more efficient turbines, increasing electricity generation while continuing to use existing grid infrastructure such as substations and interconnection points.

This approach supports both energy efficiency and circular economy principles, reducing the environmental impact associated with building entirely new assets while accelerating renewable capacity deployment.

“We are proud to collaborate with PepsiCo, Givaudan, and Smurfit WestRock to expand renewable energy capacity in Spain,” says Hallvard Granheim, EVP Markets, Statkraft.

“This agreement shows how companies of varied sizes can work together to help drive meaningful climate impact.

"Statkraft is delighted to support a coalition that brings additional renewable capacity online while enabling businesses across Europe to decarbonise.”

The project marks PepsiCo’s second power purchase agreement in Spain, reinforcing its strategy to scale renewable electricity sourcing and support wider grid decarbonisation.