The largest producer of denim in Latin America is taking a leap toward renewable energy.

Vicunha announced on Thursday that its company’s manufacturing facilities in northeast Brazil will soon consume 100 percent renewable energy under an agreement signed with the Enel Group, one of the largest private companies in the Brazilian electricity sector.

This agreement allows Vicunha to generate clean energy to sustainably meet its consumption needs.

Starting mid-year, clean energy will power the multinational company’s three factories located in the cities of Maracanaú, Pacajus, and Natal. The partnership will enable the self-production of energy from five wind power plants in the state of Piauí.

As one of the top three global denim producers, Vicunha’s transition to renewable energy plays a pivotal role in advancing a low-carbon economy.

“We are constantly seeking ways to contribute to a more sustainable fashion industry by optimizing resources such as energy, water, and raw materials like cotton. The decarbonization strategy for our manufacturing plants represents a major step forward in this regard,” said Marcel Imaizumi, Vicunha operations and new business director.

The strategy aligns with Vichuna’s overall sustainability mission including efforts to produce denim with reclaimed water and to support regenerative agriculture.

The deal was negotiated by Enel Comercializadora e Trading, which provides energy solutions for consumers in the free energy market. The company is among the top three energy traders in Brazil, holding a 7.5 percent market share. It was approved in late February by the Administrative Council for Economic Defense, a federal agency under the Ministry of Justice responsible for ensuring free market competition in Brazil.

Enel has been a part of the fashion industry’s decarbonization efforts. In 2019, Gap Inc. announced a virtual power purchase agreement with Enel Green Power, a division of Enel Group, to purchase the electricity equivalent of a 90 MW portion of its Aurora wind farm each year.

“We are committed to assisting businesses across all productive sectors in their sustainability agendas, aligning ESG goals with economic benefits,” said Francisco Scroffa, head of Enel’s non-regulated energy market in Brazil. “Enel offers a diverse portfolio capable of serving companies with different profiles, expanding our network of partners in the decarbonization journey.”