Enlight seals renewable PPA with PepsiCo's SodaStream in Israel

US beverage giant PepsiCo Inc’s (NASDAQ:PEP) SodaStream will make its products in Israel by using 100% renewable energy under a power off-take deal with Israel’s Enlight Renewable Energy Ltd (TLV:ENLT, NASDAQ:ENLT).

The renewables developer will provide SodaStream with electricity from its solar and battery storage facilities, the PepsiCo subsidiary said on Tuesday. Supplies will be made under a 15-year corporate power purchase agreement (PPA), which was signed following a recent change of market regulations in Israel that allow green power producers to enter direct PPAs with large corporate clients.

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Thanks to the deal, sparkling water brand SodaStream will have all of its production sites in Israel switch to renewable power from the beginning of 2024. The move will back the company’s goal of achieving net-zero emissions by 2040.

SodaStream's factories in Ashkelon and Idan Negev house the company’s main production facilities in Israel.

In June, Enlight inked its first corporate PPA, committing to supply power to a new office campus of US software company Amdocs (NASDAQ:DOX) for 12 years.