McKesson, a major provider of pharmaceutical and medical products and business services, has entered into a long-term power purchase agreement (PPA) with NRG to buy solar power from solar arrays that NRG will install at a major McKesson facility. The solar PPA represents the first step of a multi-phase plan to expand McKesson’s environmental sustainability efforts while driving cost efficiencies over the long term.
“McKesson’s commitment to renewable energy is an integral part of our sustainability strategy, as well as our focus on improving operational efficiency and driving shareholder value,” says Michael Huaco, senior vice president and global head of real estate at McKesson. “The recent innovations in solar technologies and materials are primed to bring these benefits to our industry on a broad scale.”
As part of the PPA, solar arrays will be installed at the McKesson distribution center in Robbinsville, N.J. The facility will be furnished with a combination of rooftop and ground-mounted arrays and will have a capacity of up to 3 MW of electricity. NRG will work with McKesson and local authorities to deliver the project from initial planning to final installation, which is estimated to be fully operational in 2018. The energy solution with NRG was planned in collaboration with Sustainability Roundtable Inc.’s Renewable Energy Procurement Services (REPS) and CBRE’s Energy Platform.
“We’re proud to bring renewable energy to McKesson,” says Rob Gaudette, president of NRG Business Solutions. “Our mission is to create a sustainable energy future by safely providing reliable and cleaner power. Helping companies achieve their sustainability goals is how that mission takes hold, leading us to innovative solutions for complex challenges, and taking the guesswork out of the equation for businesses of all types.”
In addition to generating environmental benefits, the solar arrays will reduce costs for McKesson, producing electricity equal to approximately 74% of the facility’s annual consumption. The estimated electricity produced in one year of the project is equivalent to powering about 400 homes. The next phase of McKesson’s multi-phase strategy will continue to focus on developing additional arrays on McKesson distribution centers in the U.S.
This agreement is part of McKesson’s broader environmental sustainability efforts. In addition to reducing its carbon footprint through energy efficiency gains in facilities, the company also has programs to recycle, monitor water usage, proactively manage hazardous and regulated waste, and optimize fleet usage to reduce fuel consumption. Several of its facilities are also certified under the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) standard and WELL (a system that measures features of the built environment impact on human health).