Estee Lauder invests in solar powered manufacturing
600-kilowatt solar energy system as part of a drive to invest in
renewable and greener energy and reduce long-term operating costs.
The company obtained financing for an undisclosed figure from MMA Renewable Ventures, a subsidiary of Munipical Mortgage & Equity, specializing in financing major investments in renewable energy.
The project will be undertaken at Estee Lauder's Oakland, New Jersey production site, one of the company's 11 production sites in the North America.
It also has four futher production sites in Europe.
The solar installation at Oakland is claimed to be one of the largest rooftop mounted solar installations as well as the largest third-party solar energy supply contract in the state.
It has been designed and installed by DT Solar to incorporate more than 3,000 panels installed on top of the facility that houses the manufacturing for the company's Aramis brand.
It is expected to generate 650,000 kilowatt-hours annually, something that will help offset production of more than 10,000 tons of carbon dioxide over its expected 25-year lifetime - the equivalent of using 34,000 barrels of oil.
"Through this new solar energy system, Estee Lauder is taking action to combat climate change and environmental degradation while reducing its own exposure to volatile energy prices," said Ted Turner, owner of DT Solar.
"The company is further blazing trails by enacting its clean energy commitment via a PPA, an innovative third party ownership model that is capable of shifting solar energy from a relatively niche market to routine corporate practice," he added.
The Aramis facility is now set to benefit from a price controlled electricity supply, for which Estee Lauder has been able to benefit from a financing plan that means it has not had to supply the full capital necessary to get the project off the groung.
In fact the financing deal now means that MMA Renewable Ventures owns and operates the production facility, in turn selling the electricity it generates back to Estee Lauder.
It is expected that, as well as saving money in the long run, the project will also help to cut potentially harmful emissions from the plant caused by less cleaner energy sources.
Likewise, the project is also part of Estee Lauder's ongoing commitment to sustainable energy, which is a part of its corporate Global Environment Policy.
"With this new solar installation, we're promoting clean and renewable energy and the reduction of the harmful greenhouse gases produced by standard energy generation methods," said Malcolm Bond, executive vice president of global operations for Estee Lauder.
