Sonoco and ENGIE Announce Commencement of 140-Megawatt Virtual Power Purchase Agreement

Sonoco (NYSE:SON) and ENGIE North America began delivery under a 15-year Virtual Power Purchase Agreement for production from ENGIE’s Big Sampson Wind Project in Crockett County, Texas.

Rhea-AI Summary

Sonoco (NYSE:SON) and ENGIE North America began delivery under a 15-year Virtual Power Purchase Agreement for production from ENGIE’s Big Sampson Wind Project in Crockett County, Texas.

The VPPA covers an estimated 140 megawatts per year, about 83% of Sonoco’s U.S. electricity needs in 2025 and roughly 52% of Big Sampson’s expected output, and is expected to cut Sonoco’s baseline carbon emissions by ~19%.

Positive

• 140 MW VPPA contracted for 15 years
• Covers ~83% of Sonoco U.S. electricity consumption in 2025
• VPPA expected to reduce Sonoco baseline carbon emissions by ~19%
• Big Sampson: 60 turbines at 4.5 MW each (project capacity)
• Project adds >$60 million in local tax revenues over 15 years
• ~400 construction jobs created; 10–15 ongoing operations roles

Negative

• None.

Argus Feb 3 session

+1.58% close to close Open Argus

Details

News Market Reaction – SON

In the Feb 3 session, SON gained 1.58%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a long-term VPPA under which Sonoco contracted 140 megawatts, covering abo...

Analysis

This announcement details a long-term VPPA under which Sonoco contracted 140 megawatts, covering about 83% of its U.S. electricity needs and supporting a 19% reduction in baseline emissions toward a 25% Scope 1 and 2 target by 2030. Placed alongside recent portfolio and leadership changes, it underscores a strategic focus on sustainability and operational reshaping. Investors may watch upcoming earnings and Investor Day commentary for how these initiatives integrate into financial and capital allocation plans.

Key Figures

VPPA capacity: 140 megawatts U.S. electricity coverage 2025: 83% Big Sampson output share: 52% +5 more

VPPA capacity

140 megawatts

Electricity contracted annually under VPPA with ENGIE

U.S. electricity coverage 2025

83%

Share of Sonoco U.S. electricity consumption in 2025 covered by VPPA

Big Sampson output share

52%

Portion of Big Sampson’s expected capacity contracted by Sonoco

VPPA term

15 years

Contract length commencing at Big Sampson commercial operation

Emissions reduction target

25%

Planned reduction in global Scope 1 and 2 emissions by 2030 vs 2020

Baseline reduction from VPPA

19%

Expected reduction of Sonoco’s baseline carbon emissions from VPPA credits

Wind turbines

60 turbines

Number of turbines at Big Sampson Wind Project

Local tax revenues

More than $60 million

Projected tax revenues to county and school districts over 15 years

Historical Context

5 past events · Latest: Jan 20

5 events

1. Jan 20

   Leadership change

   24h Move

   +1.1%

   Announced retirement of long-tenured COO with responsibilities absorbed by existing leadership.

2. Jan 13

   Earnings timetable

   24h Move

   +0.3%

   Set dates for 2025 Q4/full-year earnings release and Investor Day presentations.

3. Nov 10

   Business reorganization

   24h Move

   -0.3%

   Consolidated consumer packaging units into two geographic segments to simplify operations.

4. Nov 03

   Asset divestiture

   24h Move

   +0.5%

   Completed ThermoSafe sale for up to $725M, earmarking proceeds for debt reduction.

5. Nov 03

   Deal completion

   24h Move

   +0.5%

   Buyer Arsenal Capital confirmed closing of ThermoSafe acquisition from Sonoco.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

virtual power purchase agreement, vppa, scope 1, scope 2, +1 more

5 terms

virtual power purchase agreement financial

"announced that delivery of the Virtual Power Purchase Agreement (“VPPA”) for production"

A virtual power purchase agreement is a financial contract where a buyer agrees to pay a fixed price for electricity generated by a specific renewable project while the actual power stays on the local grid. It’s like locking in the price for apples from a distant farm while still shopping at your neighborhood market; investors watch these deals because they can stabilize future energy costs, create predictable cash flows or liabilities, and support a company’s environmental claims, all of which affect valuation and risk.

vppa financial

"Under the VPPA, Sonoco and ENGIE contracted an estimated 140 megawatts"

A VPPA (virtual power purchase agreement) is a financial contract where a buyer agrees to pay a fixed price for electricity produced by a specific renewable project, while the actual power is delivered into the grid and the buyer receives the environmental credits tied to that generation. For investors, VPPAs matter because they can stabilize long-term energy costs, create predictable cash flows or future liabilities, and support a company's emissions goals — similar to hedging fuel costs while also claiming the environmental benefits.

scope 1 technical

"aims to reduce global Scope 1 and Scope 2 emissions by 25% by 2030"

Scope 1 are the greenhouse gas emissions a company produces directly from sources it owns or controls, like fuel burned in company vehicles, boilers, or on-site factories. Think of it as the smoke coming out of a business’s own chimney versus electricity it buys from the grid. Investors watch Scope 1 because these direct emissions can create regulatory costs, operational changes, and reputational risks that affect profitability and long-term value.

scope 2 technical

"aims to reduce global Scope 1 and Scope 2 emissions by 25% by 2030"

Scope 2 covers the greenhouse gas emissions produced indirectly when a business uses energy it buys from others—most commonly electricity, but also steam, heating or cooling. Think of it like the pollution linked to your household’s electricity bill: you didn’t burn the fuel yourself, but your consumption still causes emissions. Investors watch Scope 2 because it affects a company’s climate footprint, energy costs, regulatory exposure and reputation, all of which can influence long‑term financial performance.

renewable energy credits technical

"renewable energy credits acquired under the VPPA expected to help reduce"

Renewable energy credits (RECs) are tradable certificates that prove one megawatt-hour of electricity was generated from a renewable source, separate from the physical electricity itself. Think of a REC as a receipt for supporting green power: companies buy or sell them to meet regulatory targets or sustainability goals. Investors pay attention because RECs create additional revenue or cost obligations, influence corporate environmental claims, and can affect the economics and valuation of clean‑energy projects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Big Sampson Wind Project is First Offsite Renewable Energy Project for Sonoco 
Will represent over 83% of Sonoco U.S. electricity needs

HARTSVILLE, S.C., Feb. 02, 2026 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE:SON), one of the largest global sustainable packaging companies, and ENGIE North America (“ENGIE") today announced that delivery of the Virtual Power Purchase Agreement (“VPPA”) for production from ENGIE’s Big Sampson Wind Project (“Big Sampson”), in Crockett County, Texas has commenced.

Under the VPPA, Sonoco and ENGIE contracted an estimated 140 megawatts of electricity per year, representing approximately 83% of Sonoco’s U.S. electricity consumption in 2025 and approximately 52% of the expected output capacity of Big Sampson, for a term of 15 years commencing upon Big Sampson’s entry into commercial operation.

The VPPA represents another step in Sonoco’s integrated approach to corporate sustainability. Aligned with their SBTi-validated reduction goal, the Company aims to reduce global Scope 1 and Scope 2 emissions by 25% by 2030 from a 2020 baseline through various corporate initiatives, including improved packaging design, installing energy-efficient equipment and procuring renewable energy sources. The VPPA is an example of these efforts, with renewable energy credits acquired under the VPPA expected to help reduce Sonoco’s baseline carbon emissions by approximately 19%.

“We are excited to take delivery of our VPPA based on the Big Sampson wind project. This project will accelerate our progress toward our emissions targets while delivering clean, reliable power to the communities they serve,” said Scott Byrne, Sonoco’s Vice President of Global Sustainability. “We look forward to continuing this long-term partnership with ENGIE as we work together to protect the environment and future generations and continue our promise of delivering Better Packaging. Better Life. solutions,” said Byrne.

Big Sampson is a project of ENGIE, a global leader in the net zero energy transition. The project, completed in late 2025, will be an addition to ENGIE North America’s more than seven gigawatts of renewable energy production in operation or under construction across the United States and Canada.

“We are delighted that the Big Sampson wind project is now supporting Sonoco’s renewable energy ambitions and helping them meet over 83% of their purchased electricity needs in the U.S. and Canada through this VPPA,” said Dave Carroll, Chief Renewables Officer, ENGIE North America. “The commitment of customers like Sonoco and ENGIE’s track record of delivery are helping to accelerate the addition of new clean power to the U.S. grid to meet increasing demand and support economic growth, and we very much look forward to a long relationship.”

The Big Sampson Wind Project consists of 60 wind turbines, each expected to have a generating capacity of 4.5 megawatts. The project employed roughly 400 skilled construction professionals during the building phase, and about 10 to 15 full-time professionals will support operations on an on-going basis.

In addition to jobs, Big Sampson is expected to provide long-term tax revenues for both Crockett County and local school districts of more than $60 million over the 15-year life of the project.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, sustainable metal and fiber consumer and industrial packaging. The Company is now a multi-billion-dollar enterprise with approximately 22,500 employees working in 265 operations in 40 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America’s Most Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com.

About ENGIE North America
Based in Houston, Texas, ENGIE North America Inc. is a regional hub of ENGIE (ENGI.PA), a global leader in low-carbon energy and services that is listed on the Paris and Brussels Stock Exchanges. Together with its 96,000 employees around the globe, its customers, partners and stakeholders, ENGIE is committed to accelerating the transition toward a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions.

Contact:	Roger Schrum
	843-339-6018
	roger.schrum@sonoco.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Sonoco (SON) announce on February 2, 2026 about a VPPA?

Sonoco announced commencement of a 15-year VPPA for 140 megawatts of Big Sampson wind energy. According to Sonoco, the VPPA will supply about 83% of its U.S. electricity needs in 2025 and supports its SBTi-aligned emissions targets.

How much of Sonoco’s U.S. electricity needs does the Big Sampson VPPA cover for SON?

The VPPA covers roughly 83% of Sonoco’s U.S. electricity consumption in 2025. According to Sonoco, that represents an estimated 140 megawatts per year under a 15-year agreement tied to Big Sampson output.

What emissions impact does the Big Sampson VPPA have for Sonoco (SON)?

The VPPA is expected to lower Sonoco’s baseline carbon emissions by approximately 19%. According to Sonoco, this contributes to its SBTi-validated goal to cut Scope 1 and 2 emissions 25% by 2030 from 2020 levels.

What are the key project details of ENGIE’s Big Sampson wind project tied to SON?

Big Sampson consists of 60 turbines rated at 4.5 MW each, with the project completed in late 2025. According to ENGIE, it represents about 52% of the project’s expected output allocated to Sonoco under the VPPA.

What economic benefits does the Big Sampson project bring to the local area per the announcement?

The project is expected to generate more than $60 million in tax revenues for Crockett County and local school districts over 15 years. According to the companies, it also employed roughly 400 construction professionals during build-out.

How long is the VPPA between Sonoco (SON) and ENGIE and when does it start?

The VPPA term is 15 years and commences upon Big Sampson’s entry into commercial operation. According to the companies, Big Sampson reached completion in late 2025 and delivery under the VPPA has begun.