Investing.com -- Graphic Packaging Holding announced Wednesday it has signed an agreement with NextEra Energy Resources to build a 250-megawatt solar power plant in Texas to source renewable electricity and reduce greenhouse gas emissions.

Shares of the packaging company rose 1.7% in premarket trading.

Under the virtual power purchase agreement, energy produced by the plant will be sold to ERCOT, Texas's electricity grid operator. Graphic Packaging will receive renewable energy credits and financial exposure related to the project.

The solar plant, named Selenite Springs Energy Center, will be located in the ERCOT power market and is expected to begin commercial operations by the end of 2027.

The agreement represents Graphic Packaging's largest virtual power purchase agreement to date and supports the company's goal to reduce global Scope 1 and 2 emissions by 50.4% by 2032 and achieve net zero emissions by 2050.

Graphic Packaging said the deal will bring its total global purchased renewable electricity to approximately 49%.

The agreement comes as Texas faces rising electricity demand driven by data centers and industrial growth, creating pressure on ERCOT to add new generation capacity.

NextEra has been expanding investments in natural gas alongside its solar and wind portfolio to meet growing power demand from data centers. Corporate buyers provide contracted revenue for power developers like NextEra to finance and develop new energy projects.