Walmart’s Distributed Energy Journey Past, Present and Future

Walmart’s Distributed Energy Journey Past, Present and Future

Distributed Energy Forum

June 24, 2019

Joby Carlson

Director of Global Sustainability

Walmart Inc.

In 2005, we learned the difference we can make – for our communities and for our business – when we use our strengths to help others

“What if we used our size and resources to make this country and this earth an even better place for all of us: customers, associates, our children, and generations unborn? What would that mean?”

Lee Scott: Leadership in the 21st Century

Lee outlined 3 bold Sustainability Goals:

1. Be powered by 100% Renewable energy

2. To create zero waste

3. Sell products that are good for people and the

environment

Walmart also set out aspirations for a range of

social and environmental issues, including

▪ Wages

▪ Diversity

▪ Healthcare

▪ Community engagement

▪ Store design and construction

3

Since then, we have worked together, and have become widely recognized for our

leadership on environmental and societal issues

Lower Emissions lead to a stronger, sustainable business Walmart launches Project Gigaton at their Milestone Summit - April 19, 2017

Walmart was the first retailer with

a science based target – which

includes:

• 18% reduction in absolute

emissions and powered 50%

by renewable energy in our

own operations by 2025

• Working with our suppliers to

eliminate 1 billion metric

tons (1 Gigaton) of GHG by

2030 in our value chain

- Onsite renewable

- Offsite renewable - Renewable fuels

- Policy engagement

- Efficient technologies

- Energy management- Building design

- Reduce – Maintenance

- Prevent – Improved designs- Transition – New refrigerants

- Efficient technologies

- Optimize routing and filling- Driver training

- Low-carbon fuels and

electrification

In itiatives

Our Approach - Emission Reduction Strategies

Deploying Renewables

South Africa

Fuel Cells

• Onsite - We have over 520 renewable energy systems installed at our sites across 8 countries, 18 U.S. States and Puerto Rico.

• Offsite – We have 9 utility-scale wind and solar projects supplying our operations in U.S. and Mexico and recently announced 5 more in the U.S.

Walmart has installed more than 620,000 solar panels in the U.S. alone since 2007, equivalent to the area of 190 football fields.

850 MW of new generation capacity

added since 2009, with another +600 MW to be built by 2021

Rooftop solarMexico

Energy Efficient Facilities

• Reducing the energy intensity of our operations is not only a cost-effective way to contribute to our renewable energy goal and reduce emissions, it also improves our bottom line.

13% reductionin energy use per

square foot since 2010

Walmart has now installed more than 1.5 million LED fixtures across more than 6,000 s tores, parking lots, distribution centers and corporate offices.

OUR MISSION: Operate our stores for less by…

(1) lowering the price they pay for electricity

with renewable energy and battery storage

solutions

(2) helping them use less energy with high

efficiency lighting, refrigeration, and

building systems

…to deliver EDLC and help customers live better

Walmart’s Energy Origination Team

• Identify and procure new on-site and off-site renewable energy, battery storage and electric vehicle charging for U.S. stores, clubs, DCs/FCs, and home office locations

• Execute our long term corporate commitment to power 100% of our operations with renewable energy and interim goal of using 50% renewable power by 2025

• Direct savings to store P&L from lower contracted prices on ‘green’ energy than ‘brown’ alternative

• Increased store resiliency and savings opportunities from on-site energy storage and fuel cell technologies

• Enhanced customer engagement with added convenience from smart, fast electric vehicle charging

Solar Wind

• 359 roofs & carports• 1 large off-site farm

(1 in development)

• 1 on-site turbine• 3 large off-site farms

(7 new contracted)

Energy Storage &Fuel Cells

• 19 battery storage (+30-60 pipeline)

• 61 fuel cells

Electric Vehicle Charging

• 435 chargers across 110 sites + more to come!

What do

they do?

How do

stores win?

Lee Scott Speech

October 2005

Initial negotiations

begin with

W almart & SunEdison for

potential rooftop solar projects to

be financed with

PPAs; setting the stage for the

W almart Solar Program

Energy Technology Milestones

W almart signs first wind

purchase with

OG&E in OK for 561,879

kwh annually

1st solar RFP Released

Late 2007, 1st rooftop solar

projects completed

in at Sam's Club in Chino, CA and

Santa Anna, CA W almart

1st two Rooftop Solar Projects completed in

HI

1st Bloom fuel cells; Hemet and

Lancaster, CAApril, 2009, TX Duke Notrees W ind Farm

PPA begins. 4 years,

226,000 Mwhs a year

Earth Day 2009; Gov. Schwartzneger visit CA

rooftop solar

1MW Solar Tracking System at Apple Valley, CA, DC

Installed test W indstream micro wind turbine (single

unit) installed at Pleasant

Grove W almart, Rogers, AR

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

1st Parking lot light pole Micro wind

turbine project at

Palmdale, Ca Sam's Club

1st W almart & Sam's Club solar

shaded parking

lot installations in AZ

April 2013, W almart adopts Vision 2020

Renewable Energy

and Energy Efficiency Goals

President Obama visits Mountainview, CA W almart

(solar and energy efficiency

commitments)

Began piloting 200 KW Tesla battery with Solar

City Canopy Solar

sites in CA

2015 SEIA report names W almart as having the most

installed solar capacity in the

U.S. (142 MW ) for 4th consecutive year

Sept. 2015, TX Logan's Gap

W ind Farm PPA

begins; 438,000 Mwh's per yr

W almart, W W F, WRI and several large

customer develop

and sign on to the Corporate

Renewable Energy Buyers Principles

Signed TX AkuoW ind Farm PPA

Rocksprings137 GW h/yr

1st Solar Canopy Parking; Casa

Grande, DC in AZ

1st Ecotality E.V. Charging Stations under DOE Grant in

CA, W A, OR

W almart China 1st solar roof top solar

project in Schenzen

(400 KW )

October, 2012 1 MW Wind

Turbine dedicated

at the Red Bluff, DC in CA

1st test of small 10kw-15kw battery storage

units in CA

Installed test Omni W ind micro wind turbine

(1t) at Pleasant Grove

W almart

#5334 Aurora, COMultiple Roof

Mounted Solar Tests

November, 2005

#0206 McKinney, TX Multiple Building

Integrated Solar Tests

July 2005

PPA/VPPAs

Triple H 635 GW h/yr

Crocker

629 GW h/yr

Broadlands I

125 GW h/yr

Headwaters II

151 GW h/yr

Bright Stalk 459 GW h/yr

2 0 1 7 2 0 1 8

Alabama Power Green Tariff

Solar Farm

150 GW h/yr

Announces deal to add EV charging stations to

100+ sites across 34

States by 2019

Georgia Power Green Tariff

Solar Farm

182 GW h/yr

Other Utility ProgramsPuget Sound EnergyXcel-PSCO Renewable Connect SDG&E EcoChoiceAvista WA Solar Select

INSERT

Solar Video

Stationary Fuel Cells – Natural Gas

Hydrogen Fuel Cell Powered Forklifts

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2013 2014 2015 2016 2017 2018

Walmart’s Hydrogen Fuel Cell Forklifts Growth

7012 FY 2015 Group FY 2016 Group FY 2017 Group FY 2018 Group

Hydrogen Fuel Cell Powered Forklifts

System – Pumps, Compressor, Vaporizer, Ground Storage

16

Liquid Delivery Liquid StorageLiquid

Pumping

Vaporization Storage

Dispensing

We are partnering with Electrify America to provide customers and members a national

network of high-speed electric vehicle charging stations

Our new partnership with Electrify America will create a leading national

network of state-of-the-art charging stations at our stores and clubs

Example of the number of sites evaluated for EV network thus far.

Battery Storage

Multiple Technology Deployment Examples

Huntington Beach Walmart – Solar PV, Battery and EV Charging

Sam’s Club – Solar PV Roof and Parking Canopy’s + Battery

Renewable Energy

Energy Efficiency

Fleet Efficiency

Fertilizer

Optimization

Animal Agriculture

Food and Solid

Waste Reduction

Using Recycled

Content

Recycling

Avoid Deforestation More energy

efficient products

Six Pillars of the Program

Strategic Contributors:

Results

RESULTS achieved in the two years since launching the program:

• Over 1000 suppliers participating from 30+ countries

• Nearly 400 suppliers reported emissions reduction initiatives

• Totaling 93 million metric tons CO2e avoided

• Over 100 suppliers achieved “Giga-Guru” status

• Expanded program to U.K., China and Canada.

Thank you