Graphic Packaging Holding Company (NYSE: GPK) announced a virtual power purchase agreement with NextEra Energy Resources for a 250-megawatt solar energy plant in West Texas. The facility, called the Selenite Springs Energy Center, is expected to begin commercial operation at the end of 2027.

The solar plant will be located within the Electric Reliability Council of Texas market. Graphic Packaging will be the sole buyer of the facility's renewable energy attribute certificates, which are expected to cover approximately 43% of the company's 2025 electricity usage in the United States and Canada.

The agreement represents Graphic Packaging's largest virtual power purchase agreement to date. The company states the project is part of its science-based target to reduce global Scope 1 and 2 greenhouse gas emissions by 50.4% by 2032.

The Texas agreement follows a previous virtual power purchase agreement that Graphic Packaging supported in Spain, consisting of three solar plants expected to cover 70% of the company's energy demand in Europe.

According to the company, the Selenite Springs project is expected to increase Graphic Packaging's total global purchased renewable electricity to approximately 49% and reduce global Scope 1 and 2 greenhouse gas emissions by about 20% from the 2021 baseline.

"Our partnership with NextEra Energy Resources will advance our path toward net zero greenhouse gas emissions and a renewable future," said Michelle Fitzpatrick, chief sustainability officer at Graphic Packaging.

Graphic Packaging designs and produces consumer packaging made primarily from renewable or recycled materials. The company operates manufacturing facilities serving food, beverage, foodservice, household, and other consumer product brands globally.