Campbell Soup Company is leasing 14 acres of its facility in Sacramento, US, to American Capital Energy (ACE). A Power Purchase Agreement (PPA) and Land Lease Agreement (LLA) will allow ACE to construct a 2.3MW capacity PV solar power generation ground mount tracker system. ACE will own the system and be responsible for its construction, operation and maintenance.
Under the PPA, Campbell will purchase 100% of the electrical power generated by the system, which is expected to provide approximately 10% of the electricity the Sacramento plant requires annually.
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The Sacramento Municipal Utility District (SMUD) will purchase the Solar Renewable Energy Credits from this project. Over the course of the 20-year PPA, Campbell projects savings of approximately US$2,000,000 based on US Department of Energy projections for the cost of electricity in California’s Central Valley. The project will also eliminate approximately 58,000 metric tons of CO2 greenhouse gas emissions in the Sacramento region.
“With the signing of the agreement, the detailed design and construction of the system can now begin and we should be in operation by March of next year,” said Robert Shober, VP of engineering from ACE.
“Campbell’s decision to move ahead with this installation is another indicator of a strong future for on-site renewable power generation among major US corporations,” said Mike Hagan, director at ACE.
Campbell previously announced plans to host a 60-acre 9.8 MW solar panel array at a site adjacent to its Napoleon, Ohio production facility.
Brett Buatti, VP of manufacturing at Campbell’s Sacramento plant, added, “The planned solar array will benefit our many Sacramento neighbours. When completed, it will have the equivalent effect, in terms of reduction of carbon, of taking approximately 500 passenger cars off the road each year.”
