AGCO Secures VPPA for Spanish Solar Project Expansion

• AGCO partners with Bruc for a 100-MW solar project, boosting clean energy in Europe and the Middle East while slashing greenhouse gas emissions.

US agricultural machinery and technology company AGCO has entered a virtual power purchase agreement (VPPA) with Spanish renewables group Bruc for a portion of a 100-MW solar project in northwestern Spain. The 10-year agreement will provide AGCO with a significant share of the facility's 200 GWh annual clean electricity output, supporting its power needs in Europe and the Middle East.

The VPPA, facilitated by Schneider Electric, aligns with AGCO's renewable energy strategy and aims to reduce its Scope 2 greenhouse gas emissions from indirect onsite purchased electricity. Construction of the solar farm is slated to begin in late 2025, with operations expected by late 2026.

How will AGCO's VPPA with Bruc impact its renewable energy strategy and emissions?

• The VPPA with Bruc will significantly contribute to AGCO's renewable energy strategy by securing a stable and long-term supply of clean energy, enhancing energy security and cost predictability.
  
• It will help AGCO meet its sustainability targets by reducing its reliance on fossil fuels and increasing the share of renewable energy in its energy mix.
  
• The agreement will directly support AGCO's goal to reduce Scope 2 greenhouse gas emissions, which are associated with the electricity purchased and used by the company.
  
• By participating in this VPPA, AGCO demonstrates its commitment to environmental responsibility and leadership in the agricultural machinery sector.
  
• The project will enable AGCO to offset a substantial portion of its carbon footprint, contributing to global efforts to combat climate change.
  
• The partnership with Bruc and Schneider Electric may open up further opportunities for AGCO to engage in additional renewable energy projects and collaborations in the future.
• The VPPA aligns with AGCO's broader corporate sustainability initiatives, potentially enhancing its brand reputation and appeal to environmentally conscious consumers and investors.
• The clean energy generated from the solar project will support AGCO's operations in Europe and the Middle East, regions where the company is looking to expand its market presence and operational efficiency.