TAMPA, FL - Crown Holdings, Inc. (NYSE:CCK), a global leader in rigid packaging products, has announced a 15-year Virtual Power Purchase Agreement (VPPA) with Enel (BIT:ENEI) Green Power España, securing renewable electricity for its operations in Europe. The agreement aligns with Crown's Twentyby30™ sustainability initiative, aiming to reduce greenhouse gas emissions and enhance corporate stewardship.
The VPPA is set to provide Crown with renewable energy from a new photovoltaic (PV) project in Badajoz, Spain, which is scheduled to commence operations in October 2025. This project marks Crown's first European VPPA and is expected to generate approximately 285,100 Megawatt hours (MWh) annually. Crown's contract accounts for around 70% of this output, which is estimated to save the CO2 emissions equivalent of the electricity use of nearly 40,000 homes for one year.
In its efforts to achieve sustainability goals, Crown collaborated with Schneider Electric (EPA:SCHN), a leader in corporate renewable energy procurement and carbon management. Schneider Electric played a key role in project selection and VPPA negotiation. This new VPPA contributes directly to Crown's Science Based Targets initiative-approved goal of reaching 75% renewable energy by 2030 and 100% by 2040.
In 2020, Crown became the first metal packaging manufacturer to power 100% of its U.S. and Canadian beverage can plants with renewable electricity through a VPPA in Texas. This earlier initiative, which sources wind power, is estimated to prevent over 310,000 metric tons of carbon emissions annually.
John Rost, Senior Vice President - Corporate Technology, Sustainability, and Regulatory Affairs at Crown, emphasized the significance of covering the company's energy consumption in the EU as a "milestone achievement." John Powers, VP Global Renewables at Schneider Electric, commended Crown for being a packaging industry leader in decarbonization and sustainability efforts.
The information in this article is based on a press release.
InvestingPro Insights
As Crown Holdings, Inc. (NYSE:CCK) forges ahead with its sustainability efforts through its latest Virtual Power Purchase Agreement in Europe, the company's financial health and investor outlook remain a pivotal aspect for stakeholders. Here are some insights based on real-time data and InvestingPro Tips:
InvestingPro Data reveals that Crown Holdings has a market capitalization of $9.24 billion, which reflects the scale of the company in the packaging industry. The company's Price/Earnings (P/E) Ratio stands at 20.59, which adjusts to 18.09 when considering the last twelve months as of Q4 2023. This suggests a reasonable valuation in relation to earnings. Furthermore, the company's revenue for the last twelve months as of Q4 2023 is reported at $12.01 billion, despite a revenue decline of 7.21% over the same period.
An InvestingPro Tip highlights that Crown Holdings has raised its dividend for three consecutive years, indicating a commitment to returning value to shareholders. This is bolstered by the company's dividend yield of 1.29% and a notable dividend growth of 13.64% over the last twelve months as of Q4 2023. Additionally, analysts predict that the company will be profitable this year, which is reinforced by the fact that it has been profitable over the last twelve months.
For investors seeking a deeper dive into Crown Holdings' financials and future prospects, there are over 4 additional InvestingPro Tips available on the company's dedicated page at https://www.investing.com/pro/CCK. These tips provide valuable insights that could help inform investment decisions.
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