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AGCO's Commitment to Renewable Energy

AGCO Corporation, a leader in agricultural machinery design and distribution, has taken a major step forward in its sustainability journey by signing a Virtual Power Purchase Agreement (VPPA) with BRUC, a prominent renewable energy group in Spain. This 10-year agreement not only demonstrates AGCO's dedication to responsible energy sourcing but also plays a crucial role in reducing greenhouse gas emissions related to indirect electricity purchases.

Understanding Virtual Power Purchase Agreements
A VPPA is a strategic partnership aimed at supporting renewable energy project developments—such as wind and solar farms—without the need for direct electricity delivery. This arrangement allows companies like AGCO to meet their sustainability goals, minimize their carbon footprint, and encourage growth in the renewable energy infrastructure sector. Roger Batkin, AGCO's Senior Vice President and General Counsel, emphasized that this agreement is a tangible step towards achieving the company's renewable energy targets and generating sustainable outcomes for farmers and the environment.

Strategic Importance
Tim Millwood, Senior Vice President of Supply Chain, noted that this agreement serves as a strategic tool for meeting both supply chain and sustainability objectives. He stated, "This VPPA enables us to secure stable, long-term clean energy rates, enhancing supply chain resilience and proving that sustainability and operational excellence go hand in hand."

Solar Project Development
The VPPA facilitates the development of BRUC's new 100-megawatt (MW) photovoltaic solar project in Northwestern Spain, expected to generate about 200 GWh of renewable electricity annually. A significant portion of this output is designated to cover a substantial share of AGCO's electricity needs in Europe and the Middle East. The construction of this solar facility is scheduled to begin in the latter half of 2025, with expected commercial operation by the end of 2026.

Building a Sustainable Future
Luis Venero, CEO of BRUC, expressed enthusiasm about contributing to AGCO's sustainability efforts by providing renewable energy to aid their decarbonization initiatives. He remarked, "This partnership reflects our commitment to developing a cleaner energy model, with VPPAs being integral to our long-term business strategy."

Schneider Electric, a specialist in the energy sector, has supported this VPPA initiative. AGCO plans to leverage VPPAs in regions where they provide the most cost-effective and scalable route for renewable electricity supply, especially when direct sourcing is less feasible.

Looking Ahead
For those interested in AGCO's broader sustainability efforts, detailed information is available on their website along with the upcoming 2024 Sustainability Report. Further insights into BRUC's operations can also be found on their official site.

AGCO Corporation, founded in 1990 and headquartered in Duluth, Georgia, is dedicated to advancing agriculture through innovative technology. With a revenue of approximately $11.7 billion in 2024, AGCO delivers value to farmers globally through its diverse portfolio of leading brands, including Fendt®, Massey Ferguson®, and Valtra®.