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PepsiCo to use 100% renewable electricity in US

PepsiCo Inc. said Jan. 15 that it is aiming to use 100% renewable electricity this year for its direct operations in the U.S., which it said accounts for nearly half of its total global electricity consumption.

To achieve this, the snacks and beverage maker said it plans to create a portfolio of power purchase agreements, or PPAs, and virtual power purchase agreements, or VPPAs, which will fund the development of new renewable electricity projects. The portfolio will also have renewable energy certificates, or RECs, which are credits certified by independent third parties that support existing green electricity generation from renewable sources.

PepsiCo said its portfolio will feature more RECs in 2020 and gradually move toward PPAs and VPPAs by 2025.

In addition, PepsiCo is looking to expand its onsite renewable electricity. The company has already installed solar panels at some of its facilities in the country, including its global headquarters in Purchase, N.Y.; Frito-Lay sites in Modesto, Calif. and Casa Grande, Ariz.; as well as PepsiCo factories in Fresno, Calif., and Tolleson, Ariz.

The move to use renewable energy for its U.S. operations is expected to help PepsiCo reduce greenhouse gas emissions by 20% from company-wide operations, relative to a 2015 baseline. The company said this will help it achieve its goal to cut greenhouse gas emissions across its global value chain by 20% by 2030.