ARLINGTON, Va. - RTX (NYSE: RTX), a global technology leader, has entered into a significant agreement with ENGIE North America's subsidiary, ENGIE Resources LLC, to supply 100% renewable electricity to 12 of its facilities in Texas. The deal, which is set to run through 2033, marks RTX's largest procurement of renewable energy, aiming to nearly double its renewable electricity usage compared to 2023.
Starting in 2024, six RTX sites will transition to renewable energy, with expansion to all 12 locations anticipated by 2028. The initiative is a stride towards meeting RTX's environmental goals, which include obtaining 10% of its electricity from renewable sources by 2025 and slashing greenhouse gas emissions by 46% from 2019 figures by 2030.
Annette McNeely, RTX's Vice President of Environment, Health & Safety, emphasized the company's commitment to reducing emissions through increased use of renewable electricity. According to the agreement, over the next decade, RTX will receive more than 1.5 million megawatt-hours of clean energy, which could reduce carbon emissions by an estimated 560,000 metric tons.
This reduction is equivalent to the yearly electricity consumption of over 100,000 homes, underscoring the agreement's environmental significance.
The largest RTX site included in the deal is the Raytheon (NYSE:RTN) facility in McKinney, Texas, known for manufacturing advanced sensors, high-energy lasers, and radars. This location alone is expected to use over 55% of the total renewable energy procured under the agreement.
A portion of the renewable energy for 2024 will come with renewable energy certificates (RECs) from the Priddy Wind Project in Mills County, Texas, while the remaining energy needs for 2024 and beyond will be met through several new renewable electricity projects in Texas, in partnership with ENGIE.
This agreement was facilitated by Trio, previously known as Edison Energy, who acted as RTX's clean energy advisor. Joey Lange, Senior Managing Director of Energy Supply Advisory at Trio, expressed pride in the collaborative effort that led to this innovative renewable energy procurement structure.
RTX, with 2023 sales reaching $69 billion and over 185,000 employees worldwide, continues to push the boundaries of technology and science through its businesses, including Collins Aerospace, Pratt & Whitney, and Raytheon.
This news is based on a press release statement.
InvestingPro Insights
As RTX (NYSE: RTX) embarks on its ambitious renewable energy initiative, its financial health and market performance remain crucial for investors monitoring the company's ability to invest in such large-scale projects. InvestingPro data reveals a robust market capitalization of $133.73 billion, indicating a strong position in the market. The company's P/E ratio stands at 44.9, reflecting investor confidence in RTX's future earnings potential, a sentiment further supported by a P/E ratio of 42.6 when adjusted for the last twelve months as of Q4 2023.
InvestingPro Tips suggest that RTX's management has been actively engaged in share buybacks, a move often interpreted as a sign of confidence in the company's value and prospects. Additionally, RTX has been a consistent presence in the dividend landscape, maintaining payments for an impressive 54 consecutive years, offering a current dividend yield of 2.34%. This track record of shareholder returns complements the company's latest environmental efforts, potentially appealing to socially responsible investors.
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