Pharma Company Zoetis Signs PPA with Scout Clean Energy to Support Growing U.S. Footprint

Researched by Industrial Info Resources (Sugar Land, Texas)--Pharmaceutical and biotech companies have some of the greenest credentials in the industrial world, and Fortune 500 animal medicines producer Zoetis Incorporated (NYSE:ZTS) (Parsippany, New Jersey) is one of the latest in the pharma-biotech sector to achieve a cleaner environmental profile through a power purchase agreement (PPA) with Scout Clean Energy (Boulder, Colorado) for some of the output from a Texas windfarm.

The virtual PPA between Zoetis and Scout is for 50 megawatts (MW) of clean power from Scout's 180-MW Heart of Texas Windfarm, completed in 2020 in McCulloch County, Texas, and will last for a 12-year period. The agreement supports Zoetis' growing energy needs as it prepares for the completion of growth projects throughout the U.S. and is in keeping with the company's goal of achieving carbon-neutrality by 2030. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can click here for the plant profile.

Zoetis almost certainly is accounting for increased energy consumption from U.S. growth projects, including the expansion of existing sites and a brownfield project. One of the company's largest projects is occurring at its plant in Kalamazoo, Michigan, where Zoetis intends to expand both liquid and solid product lines. At the existing 565,000-square-foot building, Zoetis is adding a 10,000-square-foot addition with equipment for solid oral-dose animal medications. Also on the campus, general contractor The Austin Company (Cleveland, Ohio) is constructing a 56,000-square-foot facility set up for aseptic fill-finish activity. Both portions of the project have been underway since 2022 and are expected to wrap up next year. Subscribers can learn more by viewing the reports on the solid dose and fill-finish projects.

Zoetis is underway with another expansion at its vaccines facility in Charles City, Iowa. An expansion to the north of the building will add 60,000 square feet, while another expansion on the 600,000-square-foot building's east side will add 35,000 square feet. Both portions of the expansion will include more temperature-controlled space, biological filling and process equipment, and storage space. According to Zoetis, the Charles City site primarily produces poultry vaccines, although vaccines for other species such as dogs, hogs and horses also are manufactured there. The east expansion is expected to be completed later this year, followed by the north-side expansion in 2025. Subscribers can learn more by viewing the project reports.

Another Zoetis project kicked off late last year in Lithia Springs, Georgia, on the western outskirts of Atlanta, where the company is renovating a 620,000-square-foot former beverage distribution center to include 150,000 square feet of manufacturing space and cleanrooms, as well as storage and office space, and 100,000 square feet reserved for future use. When completed in 2026, the facility is expected to bring 150 jobs to the area. Subscribers can learn more by viewing the project report.

Zoetis' latest power provider, Scout, also is planning several projects to further expand its clean-energy reach in the U.S. One of the company's most ambitious projects is set for Benton County, Washington, although development recently suffered a setback. As originally envisioned, the Horse Heaven Clean Energy Center was to include more than 240 wind turbines, with further turbines to be added at a later date, as well as a solar component and battery energy storage system (BESS). However, last week, Washington's Energy Facility Site Evaluation Council (EFSEC) voted in favor of a rule that new wind turbines cannot be located within two miles of the nests of endangered ferruginous hawks, which have nests sited throughout the project's planning area. According to trade media, the decision effectively reduces the number of turbines at the Horse Heaven facility by one half. Scout has the option of appealing the EFSEC's decision.

It is unclear how the decision will affect the project's timeline. Construction of the initial turbines was expected to begin this year, followed by the solar and BESS components in 2025. The facility's originally planned output of more than 1,000 MW will be affected by the EFSEC decision should Scout not succeed in an appeal. Subscribers can learn more by viewing the project reports.

Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).