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PepsiCo Becomes Largest Corporate Buyer of Renewable Energy

The beverage giant's billion-kilowatt-hour purchase will offset 100 percent of the energy used by its U.S. operations.

With its first purchase of renewable energy certificates, announced yesterday, PepsiCo shot to the head of the list of the country's green power buyers.

The company will buy more than 1.1 billion kilowatt-hours of renewable energy over the next three years, sufficient to offset the electricity used to power all of Pepsi's U.S. manufacturing facilities, distribution centers, headquarters and regional offices.

"Energy is a key focus for PepsiCo within its environmental sustainability agenda," said John Compton, PepsiCo North America's CEO. "The purchase of these RECs is not only in line with our progress to date, but further advances our commitment to sustainability and helps make a positive impact in the communities we serve across the country."

Green power is produced from renewable resources such as solar, wind, geothermal, biogas, biomass and low-impact hydro. These energy sources are considered cleaner and have a superior environmental profile than conventional sources of electricity. Purchasing RECs helps drive the development of additional renewable energy capacity nationwide.

"America is shifting to a 'green culture,' with more and more businesses understanding that environmental responsibility is everyone's responsibility," EPA Administrator Stephen L. Johnson said. "By switching to alternative, renewable power sources, PepsiCo is proving that going green can be the choice of every generation."

Based on national average emissions rates, the U.S. EPA estimates PepsiCo's purchase is the same amount of electricity needed to power nearly 90,000 average American homes annually.

The purchase moves Pepsi to the head of the EPA's list of top-25 green power purchasers, as well as becoming the top Fortune 500 purchaser of renewables. PepsiCo also becomes a member of the EPA's Green Power Partnership, which is comprised of organizations that voluntarily purchase green power as a way to reduce the environmental impacts associated with conventional electricity use.

Earlier this year the EPA also recognized Pepsi as an Energy Star Partner of the Year for outstanding energy management and reductions in greenhouse gas emissions. PepsiCo's Frito-Lay North America division received the award in 2006.

Below are the EPA's top 10 Green Power Partners, across government and corporate sectors. The full list is available from the EPA's Green Power website.
  • 1. PepsiCo
  • 2. Wells Fargo & Co.
  • 3. Whole Foods Market
  • 4. U.S. Air Force
  • 5. Johnson & Johnson
  • 6. U.S. Environmental Protection Agency
  • 7. Los Angeles County Sanitation Districts

  • 8. Starbucks
  • 9. DuPont Co.
  • 10. U.S. Department of Energy

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