The Virtual Power Purchase Agreements for 189 MW
from Enel's Blue Jay Solar is expected to cover 100% of McDonald's
U.S. logistics supply chain's electricity load with renewable
electricity
HOUSTON, Dec. 15,
2022 /PRNewswire/ -- McDonald's Corporation (NYSE:
MCD) and all five members of the restaurant chain's North American
Logistics Council (NALC) – Armada, Earp Distribution, Martin
Brower, Mile Hi Foods and The Anderson-DuBose Company – have signed
agreements with Enel North
America1 to purchase renewable energy and the
associated renewable energy certificates (RECs) from Enel Green Power's Blue Jay solar project in
Grimes County, Texas. This
innovative aggregation of a major company purchasing power jointly
with its logistics partners means the electricity load of
McDonald's USA's entire logistics
supply chain for all its U.S. restaurants is expected to be 100%
supported by renewable energy.
The Blue Jay solar project is expected to be fully operational
in 2023. Once complete, McDonald's and its suppliers' combined
electricity purchase is expected to amount to an estimated average
of over 470,000 megawatt hours (MWh) of renewable energy annually.
This is equivalent to avoiding over 170,000 metric tons of carbon
emissions annually or the greenhouse gas (GHG) emissions from over
80 million trucking miles driven each year2.
"Adding Blue Jay solar to our U.S. renewable energy portfolio is
one of the many important steps in our journey to achieving our net
zero aspirations," said Bob Stewart,
SVP and Chief Supply Chain Officer, North
America, at McDonald's. "This deal is a unique example of
how McDonald's and its logistics partners are combining efforts to
leverage their reach and scale to tackle supply chain emissions
together. We are excited about our collective potential to help
address climate change and drive continuous improvement."
Supply chain emissions, which are categorized as Scope 3
emissions by GHG Protocol, are challenging to address and measure
because they're driven by activities that are beyond the direct
control of the organization, such as the transportation and
distribution of products. Scope 3 emissions account for 75% of
companies' GHG emissions on average, according to 2022 report
released by CDP.
"While major corporations are increasingly encouraging and
advising their partners on how to reduce their carbon emissions,
McDonald's took it one step further by becoming the anchor buyer
alongside its suppliers. McDonald's and the NALC recognized early
on that collaboration across the supply chain is the only way to
effectively address electricity emissions for all logistics
suppliers," said Danny Fahey, NALC
Sustainability Lead and Vice President of U.S. Strategy at Martin
Brower. "This aggregation represents how a joint effort will be
essential to making continued progress towards climate goals."
The combined purchase of 189 megawatts (MW) of renewable power,
equivalent to more than 900 U.S. McDonald's restaurants-worth of
renewable energy annually, is intended to help McDonald's and the
NALC members meet their ambitious climate commitments.
"This innovative deal demonstrates how Enel is helping major
companies take a hands-on approach in helping their partners
decarbonize their operations," said Paolo Romanacci, head of
Enel North America's renewable
energy business, Enel Green Power.
"We're honored to be part of such a monumental deal and look
forward to helping McDonald's and its suppliers achieve their
supply chain emission reduction goals through this tailored
solution."
Enel, McDonald's and its suppliers are committed to creating
long-term value in the local communities surrounding the Blue Jay
solar project. The companies signed a mutual letter of intent to
participate in Enel's Premium Offer program and co-develop
community investment projects that align with the core values of
each company.
Approximately 275 jobs have been created during the construction
phase and the project is expected to generate more than
$41 million in new tax revenue over
its operating life for state taxing entities. Furthermore, Enel has
committed over $216,500 to fund STEM
and upskilling programs for local schools and colleges since the
start of the project's construction in May
2021. The Blue Jay project also includes an 88.2 MWh battery
energy storage system, which will help support the reliability of
the local energy grid.
The buyer aggregation was facilitated by Coho Climate Advisors.
"Close collaboration amongst all parties during a challenging
time in the renewable energy industry proved crucial to create this
impressive agreement," said Gavin
Ahern, Director of Client Service for Coho Climate
Advisors.
About McDonald's
McDonald's is the world's leading global foodservice retailer
with nearly 40,000 locations in over 100 countries. Approximately
95% of McDonald's restaurants worldwide are owned and operated by
independent local business owners. McDonald's purpose is to feed
and foster communities and the company is committed to protecting
the planet for communities today, and in the future. In partnership
with our Franchisees, suppliers and producers, the Company is
finding innovative ways to reduce emissions, keep waste out of
nature and preserve natural resources. Explore how McDonald's is
driving positive impact and making progress on its ESG
priorities.
About Enel
North America
Enel North America, part of the
Enel Group, is a clean energy leader in North America and is working to electrify the
economy and build a net-zero carbon future by decarbonizing energy
supply, electrifying transportation, creating resilient grids, and
promoting a just, equitable transition. Enel North America serves over 4,500 businesses,
utilities, and cities through renewable power generation, demand
response, distributed energy resources, smart e-mobility solutions
and services, energy trading, advisory and consulting services, and
more. Its portfolio includes over 8.6 GW of utility-scale renewable
capacity, 606 MW / 882 MWh of utility-scale energy storage and 63
MW / 145 MWh of distributed energy storage capacity, 4.7 GW of
demand response capacity, and 150,000 electric vehicle charging
stations. Visit enelnorthamerica.com and follow us on
LinkedIn, Twitter, and YouTube to learn more.
About Coho Climate
Advisors
Coho is a global climate adviser dedicated to helping clients
navigate complexity and take ambitious steps on their climate
journey. We provide deep market insight, analytical
problem-solving, and change management expertise so that clients
can switch to renewable energy and make other large-scale climate
and water resiliency investments with confidence and internal
alignment. To learn more about how Coho can help you get ahead of
your climate goals, visit www.cohoclimate.com.
Media Contact
Jessica
Loizeaux
northamericamedia@enel.com
1The VPPA
agreements are signed through Enel North America's renewables
business, Enel Green Power.
|
2
Equivalency calculations based on current U.S. EPA and EU
Commission data.
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SOURCE Enel North America