Graphic Packaging Holding Company has announced a virtual power purchase agreement (VPPA) with NextEra Energy Resources to support the development of a new 250-megawatt solar facility in West Texas, marking a significant step in the company's push toward renewable energy emissions reduction.
The project, known as the Selenite Springs Energy Center, will be located within the Electric Reliability Council of Texas (ERCOT) market and is expected to begin commercial operations by the end of 2027.
Under the agreement, Graphic Packaging will be the sole buyer of the facility's renewable energy certificates, which are projected to offset approximately 43% of its electricity usage across the U.S. and Canada.
The deal represents the company's largest VPPA to date and builds on its international renewable energy efforts, including a previous agreement supporting solar development in Spain. The initiative is part of Graphic Packaging's broader sustainability strategy aimed at achieving net-zero greenhouse gas emissions by 2050.
Company officials say the agreement will play a key role in meeting its science-based target to cut Scope 1 and 2 emissions by more than 50% by 2032. Once operational, the project is expected to increase the company's global renewable electricity usage to nearly half of its total consumption and reduce emissions by roughly 20% from 2021 levels.
"Our partnership with NextEra Energy Resources will advance our path toward net-zero greenhouse gas emissions and a renewable future," said Michelle Fitzpatrick, the company's chief sustainability officer.
In addition to supporting corporate sustainability goals, the Selenite Springs project is expected to contribute new energy capacity to the Texas grid, helping meet rising electricity demand while supporting reliability and cost efficiency.
The agreement highlights the growing role of large-scale corporate investments in renewable energy, as companies like Graphic Packaging leverage long-term contracts to drive both sustainability goals and grid expansion in key energy markets like Texas.
