Conagra Brands Collaborates with Bloom Energy to Utilize Fuel Cell Technology at its Ohio Production Facilities

Rhea-AI Summary

Conagra Brands (NYSE: CAG) has partnered with Bloom Energy to implement fuel cell technology at its Troy and Archbold, Ohio production facilities through a 15-year power purchase agreement (PPA). The collaboration will deploy approximately six megawatts of power, covering 70-75% of the facilities' electricity needs while projecting a 19% reduction in greenhouse gas emissions.

Bloom's combustion-free fuel cells will provide sustainable and reliable electricity generation without releasing pollutants like nitrogen oxides, carbon monoxide, and particulate matter. This initiative supports Conagra's 2030 science-based greenhouse gas reduction targets.

Additionally, Conagra has established a $9 million Sustainability Capital Allowance program to support its facilities in achieving sustainability goals through supply chain modernization and environmental impact reduction.

Positive

• 15-year PPA agreement ensures long-term stable power supply
• Technology will cover 70-75% of electricity needs at two facilities
• 19% projected decrease in greenhouse gas emissions
• $9 million investment in Sustainability Capital Allowance program

Negative

• None.

Insights

Financial Analyst

Conagra's 15-year power purchase agreement with Bloom Energy represents a strategic infrastructure investment with both operational and financial implications. The deployment of 6 megawatts of fuel cell technology across two Ohio facilities will supply 70-75% of their electricity needs, potentially providing greater energy cost predictability in historically volatile energy markets.

While specific financial terms weren't disclosed, the PPA structure typically allows companies to implement advanced energy technology without large upfront capital expenses, trading them for predictable long-term operational costs. This approach fits within Conagra's broader $9 million Sustainability Capital Allowance program, indicating a calculated approach to sustainability investments rather than ad-hoc initiatives.

The "always-on" power reliability highlighted in the release carries particular value in manufacturing settings, where production disruptions from grid instability translate directly to lost revenue. By securing consistent power generation at facilities in grid-constrained Ohio, Conagra is effectively mitigating operational risk.

This initiative aligns with an emerging corporate trend of viewing energy infrastructure not merely as a cost center but as a strategic asset that can enhance operational resilience while addressing sustainability objectives. For Conagra, the 15-year commitment indicates confidence in the technology's long-term economic viability alongside its environmental benefits.

Sustainability Expert

This partnership represents meaningful progress toward Conagra's science-based targets, with the 19% projected reduction in greenhouse gas emissions at these facilities delivering quantifiable progress against the company's 2030 climate commitments. The implementation at two significant production facilities indicates Conagra is targeting high-impact operational areas rather than peripheral sustainability initiatives.

The combustion-free nature of Bloom's fuel cells eliminates nitrogen oxides and carbon monoxide emissions typical of traditional power generation, addressing both climate concerns and local air quality – increasingly important considerations as consumers and investors scrutinize food companies' environmental footprints.

By validating its targets through the Science Based Targets initiative, Conagra has subjected its environmental goals to third-party verification, providing greater credibility to its sustainability claims. This approach helps mitigate greenwashing concerns that often accompany corporate environmental announcements.

The broader $9 million Sustainability Capital Allowance program signals systematic rather than opportunistic investment in environmental improvements. By earmarking specific capital for sustainability initiatives, Conagra is demonstrating to stakeholders that environmental performance merits dedicated financial resources, not just policy statements.

For food manufacturers with energy-intensive production processes, investing in cleaner energy generation represents one of the most direct paths to meaningful emissions reductions, particularly in regions like the Midwest where the electricity grid remains heavily dependent on fossil fuels.

New Technology Leverages Renewable Energy Solutions and Advances Conagra's Climate Change Goals

CHICAGO, April 1, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) and Bloom Energy (NYSE: BE), a global leader in power solutions, today announced they will collaborate to utilize Bloom's fuel cell technology at Conagra's Troy and Archbold, Ohio production facilities. The 15-year PPA (power purchase agreement) will deploy approximately six megawatts and provide combustion-free electricity generation, supplying approximately 70% to 75% of the electricity needs at the Troy and Archbold facilities, while also projecting a 19% decrease in their greenhouse gas emissions. This initiative aligns with Conagra's 2030 science-based greenhouse gas reduction targets¹, which have been validated by the Science Based Targets initiative, a leading corporate climate effort driving the transition to a zero-carbon economy.

Bloom's fuel cells generate resilient, sustainable and predictable electricity without combustion, with "always-on" power reliability. Bloom's combustion-free fuel cells avoid the release of pollutants such as nitrogen oxides, carbon monoxide and other particulate matter typically associated with combustion-based power generation methods.

"We are delighted to partner with Conagra Brands, a leading branded food company," said Adam Colling, C&I Sector Leader at Bloom Energy. "Our collaboration underscores Bloom's commitment to providing clean and reliable energy solutions and driving economic value in grid-constrained regions like Ohio and the greater Midwest."

"We are committed to channeling our operational efficiency efforts into strategic areas where we can make a significant impact across our production process. We expect Bloom's fuel cells to provide cleaner and reliable power at our Troy and Archbold facilities," said Christine Daugherty, vice president of sustainability at Conagra Brands. "Implementing this technology is a significant step towards achieving our science-based targets, supporting our pursuit of renewable energy solutions and reducing our environmental footprint."

Complementing this project, Conagra established a $9 million Sustainability Capital Allowance program, which supports the company's production facilities in achieving their sustainability goals by investing in technologies that modernize its supply chain, reduce environmental impact and promote sustainable practices across its operations.

Conagra's efforts to enhance sustainability at its production facilities are part of the company's broader Citizenship strategy, which encompasses a wide range of topics and is guided by four focus areas: Good Food, Responsible Sourcing, Better Planet and Stronger Communities. To learn more about Conagra's sustainability initiatives, visit https://www.conagrabrands.com/our-company/corporate-social-responsibility

About Conagra Brands 

Conagra Brands, Inc. (NYSE: CAG), is one of North America's leading branded food companies. We combine a 100-year history of making quality food with agility and a relentless focus on collaboration and innovation. The company's portfolio is continuously evolving to satisfy consumers' ever-changing food preferences. Conagra's brands include Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, Slim Jim®, Angie's® BOOMCHICKAPOP®, and many more. As a corporate citizen, we aim to do what's right for our business, our employees, our communities, and the world. Headquartered in Chicago, Conagra Brands generated fiscal 2024 net sales of more than $12 billion. For more information, visit www.conagrabrands.com.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their power needs. The company's leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies around the world turn to Bloom Energy as a trusted partner to deliver lower carbon electricity today and a net-zero future. For more information, visit www.BloomEnergy.com.

Forward Looking Statements
This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or the negative of these words or similar terms or expressions that concern Bloom's expectations, strategy, priorities, plans, or intentions. These forward-looking statements include, but are not limited to, expectations regarding percentage of electricity needs to be met by Bloom solutions and reductions in greenhouse gas emissions. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, risks and uncertainties detailed in Bloom's SEC filings. More information on potential risks and uncertainties that may impact Bloom's business are set forth in Bloom's periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025, as well as subsequent reports filed with or furnished to the SEC. Bloom assumes no obligation to, and does not intend to, update any such forward-looking statements.

For more information, please contact:
media@conagra.com

Katja Gagen, Director Corporate Communications
press@bloomenergy.com 

¹ Conagra committed to reducing absolute Scope 1 and 2 greenhouse gas emissions by 25% by 2030 as compared to a fiscal year 2020 baseline. In addition, Conagra committed to reducing Scope 3 greenhouse gas emissions from purchased goods and services by 20% per metric tonne of material sourced within that same timeframe

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SOURCE Conagra Brands, Inc.

FAQ

How much electricity will Bloom Energy's fuel cells provide to Conagra's Ohio facilities?

The fuel cells will provide 70-75% of electricity needs at Conagra's Troy and Archbold facilities through approximately six megawatts of power generation.

What is the duration of CAG's power purchase agreement with Bloom Energy?

Conagra Brands has signed a 15-year power purchase agreement (PPA) with Bloom Energy.

How much will Conagra's greenhouse gas emissions decrease with the new fuel cell technology?

The implementation of Bloom's fuel cell technology is projected to decrease greenhouse gas emissions by 19% at the Ohio facilities.

How much has CAG allocated for its Sustainability Capital Allowance program?

Conagra has established a $9 million Sustainability Capital Allowance program to support sustainability initiatives across its facilities.

Which Conagra facilities will implement Bloom Energy's fuel cell technology?

The fuel cell technology will be implemented at Conagra's Troy and Archbold production facilities in Ohio.