MIDLAND — Dow Chemical Co. (NYSE: DOW) Tuesday announced an increase in its clean energy target from 400 megawatts to 750 megawatts by 2025.
The company said it was able to meet the original target within one year of its announcement in 2015, so the target is going up.
To do so, Dow announced a 10-year power purchase agreement with NRG Energy Inc. (NYSE: NRG) and NRG Yield Inc. (NYSE: NYLD, NYLD.A) from the 150-megawatt Goat Mountain I and II wind farms in Texas, which will power Dow’s Freeport, Texas plant.
The collaboration with NRG Energy and the additional 150 megawatts of renewable energy contributed to a total of approximately 500 megawatts in renewable energy for Dow, resulting in the increased clean energy target.
“Dow’s 2025 Sustainability Goals define the path forward for our company,” said Neil Hawkins, Dow’s corporate vice president and chief sustainability officer.“Dow is proud to be the first company in the United States to power manufacturing sites with renewable energy at this kind of scale and that we’ve become one of the largest corporate purchasers of wind energy in America.”
Historically, Dow has utilized grid power, fossil fuels, natural gas, coal and oil to power its plants. However, with the change in market prices and policies, Dow officials say the company can now use renewables cost-effectively to help operate the plants and reduce its carbon footprint.
Said Jack Broodo, Dow’s business president of feedstocks and energy: “Through cost-advantaged power, Dow is manufacturing materials through renewable energy in one of the largest scale industrial partnerships in the world. In fact, at the 400 megawatt level, Dow is now in the top five industrial users of renewable power in the U.S.”
NRG’s 11,000-acre Goat Mountain I and II wind farms are in Coke and Sterling counties, north of San Angelo, Texas. These farms are part of the NRG renewable portfolio with 4,313 megawatts of wind and solar generation owned either entirely or in part by NRG or NRG Yield.
Said said Craig Cornelius, senior vice president and head of renewables at NRG: “Dow represents one of many companies that are driving an evolution in America’s energy mix as they seek cleaner sources of power that also provide more certainty over future energy costs.”
Dow currently supplies its Freeport, Texas, facilities with 350 megawatts of wind power annually, which is the equivalent amount of electricity needed to power nearly 50,000 homes.