Bayer and Cat Creek Energy sign landmark renewable energy deal
Bosie, ID – Bayer and Cat Creek Energy (CCE), a renewable energy Independent Power Producer, announced a long-term Structured Renewable Energy Credit (REC) Purchase Agreement that will satisfy Bayer´s renewable electricity needs and lead to the construction by CCE of multiple variable renewable energy resources plus energy storage facilities in Idaho. The renewable energy projects will generate 1.4 terawatt hours of clean electricity annually.
“The innovative agreement with CCE marks one of the biggest single renewable energy deals in the United States. It will secure 40 percent of Bayer’s global and 60 percent of Bayer´s U.S.-purchased electricity demand out of renewable sources, while meeting Bayer’s ambitious quality criteria for renewable electricity,” said Werner Baumann, CEO of Bayer AG.
The project will realize 1.4 terawatt hours of power, an amount equal to the energy consumption of 150,000 households. In terms of CO2, the deal enables Bayer to reduce annual emissions by 370,000 tons. That’s roughly equivalent to the emissions of 270,000 mid-sized cars, or the amount that 31.7 million trees are capable of binding annually.
In accordance with the United Nations Sustainable Development Goals and the Paris Agreement to limit global warming to 1.5 degrees Celsius by 2050, Bayer aims to continuously reduce greenhouse gas (GHG) emissions within the company and along its entire value chain. The company aims to become climate neutral in its own operations in 2030. A key strategy to achieving Bayer’s reduction targets is to purchase 100 percent sustainable renewable electricity by 2030. These reduction targets have been approved by the Science Based Targets, an initiative that drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets. Additionally, Bayer is committed to the highest standards for sustainable renewable electricity based on guidelines from the World Wide Fund for Nature (WWF), including the proximity of renewable energy production facilities to Bayer sites.
For Idaho, the renewable plus energy storage projects will continue the state’s conversion to clean reliable energy by 2045. For rural communities, the result will be over $1.5 billion in new electrical infrastructure, the creation of hundreds of jobs, and contribution of millions of dollars in year-over-year tax revenues contributed for counties and schools where the projects are built. Construction will commence in the third quarter of this year.
“As an innovation driven company, Bayer recognizes the need to introduce renewable energy solutions that are healthier for the planet and healthier for humans,” said Bayer EVP of Public Affairs, Science, Sustainability and HSE Matthias Berninger. “This project with Cat Creek Energy is exciting because it catapults our energy goal target fulfilments while also supporting Idaho, a state many of our employees call home.”
“I appreciate Bayer’s alignment with the CCE vision and efforts to build out our multi-technology 1,760 MW platform,” said fourth generation Idaho rancher and president of Cat Creek Energy John Faulkner. “We admire Bayer’s commitment to find projects near its Idaho facility, which has the highest electricity use within Bayer in the United States, signifying a major milestone in their global energy goals.”
Energy storage is a vital technological component in the successful transition to clean energy. As CCE continues its Large Volume Long Duration storage development through its Pumped Storage Hydro project, the installations under the Agreement allow for battery storage of 160 MW nameplate capacity to support and strengthen regional transmission grid integrity and reliability.