Brookfield-owned Scout Clean Energy signs 209MW corporate PPA with Colgate-Palmolive

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The Markum project will be located across McLennan and Bosque Counties in Texas, the state where this SB Energy project also stands. Image: SB Energy.

Colorado-based solar developer Scout Clean Energy has signed a virtual power purchase agreement (VPPA) with household product manufacturer Colgate-Palmolive for the power due to be produced at its 209MW Markum solar project in Waco, Texas.

The deal will last for 20 years and is expected to match the electricity requirements of Colgate-Palmolive’s entire US operations once the site is commissioned in late 2024. Markum solar will be Scout Clean Energy’s first greenfield solar project, and it said that construction – which it will manage itself – is due to start this Autumn.

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Power actually produced at the project will go into Texas’ ERCOT transmission network.

“With the PPA and construction contracts executed, we are extremely excited to move forward with the 209MW Markum Solar project. These contracts provide Scout the certainty to build our first solar project,” said Michael Rucker, CEO and founder of Scout Clean Energy.

Ann Tracy, chief sustainability officer at Colgate-Palmolive said: “VPPAs are a valuable part of our renewable energy master plan and will help us achieve our targets of net-zero carbon emissions by 2040 and 100% renewable electricity across our global operations by 2030.”

Scout Clean Energy is a subsidiary of Brookfield Renewable, one of the largest renewable energy asset owners in the US. Brookfield purchased the company in September last year alongside Standard Solar in a deal valued at roughly US$2 billion.

Brookfield recently announced plans to commission 18GW worth of renewable energy projects in the next three years across its asset portfolio, particularly targeting the growing market for corporate PPAs like this one with Colgate-Palmolive. In June the company bought the renewables development arm of utility Duke Energy for US$2.8 billion, and March saw Brookfield acquire both Australian Origin Energy and European developer X-Elio, the latter from fellow investor KKR.

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