Capital Power signs large-scale virtual power purchase agreement with Saputo Inc.

EDMONTON, Alberta, March 27, 2024 (GLOBE NEWSWIRE) -- Capital Power (TSX: CPX) has entered into a 15-year virtual power purchase agreement (VPPA) with Saputo Inc. (TSX: SAP). The long-term commitment, supported by leading energy procurement advisor Schneider Electric, marks a key milestone in Saputo’s sustainability efforts as it makes significant strides towards its climate target for 2025 and future environmental goals.

The agreement pertains to Capital Power’s Canadian-based wind facility (Halkirk 2 Wind) currently under construction. Subject to final regulatory approvals and once operational, the portion of the wind facility contracted by Saputo will generate approximately 206,300 MWh of renewable electricity per year. The new VPPA will ultimately cut down Saputo’s global CO₂ footprint by 13 per cent (against its fiscal 2020 baseline).

“As a global leader in the food industry, it is vital we demonstrate our commitment to the long-term sustainability of the dairy industry,” said Carl Colizza, President and Chief Operating Officer (North America) for Saputo. “This VPPA is an important step in sourcing clean, renewable electricity to reduce the carbon footprint of our North American operations, so that we may play our part as a sustainable dairy processor and safeguard the environment for future generations.”

“We are pleased to collaborate with industry leaders such as Saputo and Schneider Electric in delivering reliable, affordable and decarbonized energy to our North American customer base,” said Jason Comandante, Senior Vice President, Head of Canada for Capital Power. “Through this agreement, we are again able to showcase our ability to collaborate and innovate, creating mutually beneficial partnerships to reduce emissions and support achieving broader climate change targets.”

“This collaboration between Saputo and Schneider Electric represents a global best practice for today’s needed energy transition, demonstrating the power of innovative partnerships and technology while also strengthening Saputo’s position as a leading sustainable dairy processor,” said John Powers, Vice President of Renewable Energy & Cleantech for Schneider Electric.

Capital Power Forward-looking information

Certain information in this news release is forward-looking information for Capital Power within the meaning of Canadian securities laws as it relates to anticipated financial or operating performance or events. When used in this context, words such as “expected”, “will” or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause Capital Power’s actual results and experience to be materially different than the anticipated results. Forward-looking information or statements included in this news release are provided to inform Capital Power’s shareholders and potential investors about management’s assessment of future plans and operations. This information may not be appropriate for other purposes. Material forward-looking information in this press release include, among others, expectations pertaining to the timing of commercial operations and the renewable energy generation output expected from the Halkirk 2 Wind project.

This statement is based on certain assumptions and analyses made by Capital Power in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate, including assumptions around: (i) performance; and (ii) the status of and impact of policy, legislation and regulations. Whether the actual timing will conform to Capital Power’s expectations is subject to a number of known and unknown risks and uncertainties which could cause the actual timing to differ materially from Capital Power’s expectations. Such material risks and uncertainties are: (i) regulatory and political environments including changes to environmental legislation; and (ii) changes in general economic and competitive conditions. See risk factors in Capital Power’s 2023 Integrated Annual Report, for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Capital Power’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Territorial Acknowledgement

In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 region and Métis Nation of Alberta Region 4. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community.

About Capital Power

Capital Power is a growth-oriented power producer committed to net zero by 2045, with approximately 9,300 MW of power generation at 32 facilities across North America.  

We prioritize delivering reliable, affordable and decarbonized power that communities can depend on, building decarbonized power systems needed for tomorrow, and creating real net zero solutions for customers. We are powering change by changing power. 

About Saputo

Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, a leading dairy processor in Australia and the top dairy processor in Argentina. In the USA, Saputo ranks among the top three cheese producers and is one of the top producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative cheeses and beverages. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol “SAP”. Follow Saputo’s activities at Saputo.com or via Facebook, Instagram, and LinkedIn.

About Schneider Electric

Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On. For more information on Schneider Electric’s Sustainability Business, visit their website.

For more information, please contact:

Capital Power: Katherine Perron [phone] [e-mail]

Saputo:         Nicholas Estrela [phone]         [e-mail]