US retailer Target Corp (NYSE:TGT) will buy the output of a 160-MW portion of a 200-MW photovoltaic (PV) park that solar and energy storage developer Savion LLC will build in Texas.
The retail group has signed a long-term power purchase agreement (PPA) with Savion, which is a portfolio company of Macquarie’s Green Investment Group (GIG), the latter said on Friday. The deal is part of a trio of PPAs that Target announced on Thursday to support its goal of sourcing 100% of its electricity from renewable energy by 2030.
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Savion will install the 200-MW solar farm in Texas’ Brazoria County, using more than 575,000 PV panels. It plans to initiate construction late this year and bring the plant online by the end of 2022.
Denmark’s Ørsted A/S (CPH:ORSTED), meanwhile, will build a 298-MW wind farm in Nebraska that will also sell electricity to Target. Called Haystack, the plant is currently under construction and is due to become operational later this year, Ørsted said in a separate statement. The volume of the contracted generation by Target was not announced. Some of its suppliers, including food and beverage giant PepsiCo Inc (NASDAQ:PEP) and food manufacturer Hormel Foods Corp (NYSE:HRL) have also committed to buying electricity from the same project.
In addition, Target said it will buy more solar power under another PPA tied to a project in Texas. Details about this off-take deal, however, were not available.
The US retailer set its 2030 renewables goal back in 2019. It also aims to cut the greenhouse gas emissions from operations, purchased goods and services by 30% by 2030 from 2017 levels. According to it, the latest contracts, along with existing power purchasing commitments, will enable it to cover close to 50% of its power requirements from renewable energy sources and put it ahead of schedule in meeting the 2030 goal.