Engineering and manufacturing company GKN Automotive has taken a step toward reducing its greenhouse gas emissions by signing a virtual power purchase agreement (VPPA) with Recurrent Energy, a subsidiary of Canadian Solar.
This agreement will cover 65% of GKN Automotive’s electricity load in Europe and 30% of its global load.
The 10-year VPPA will facilitate the supply of approximately 2 million megawatt-hours (MWh) of renewable electricity to the European grid. This move is aligned with GKN Automotive’s commitment to using 50% renewable electricity globally by 2025 and 75% by 2030.
Dr Clare Wyatt, chief people, communications and sustainability officer at GKN Automotive, said, “Signing this VPPA with Recurrent Energy underscores our commitment to achieving our 2045 net zero ambition and contributing to the decarbonization of the industry. It reflects our intention to continue to drive a cleaner, more sustainable world, through supporting projects that add to the supply of renewable electricity.”
The agreement will support the development of the Rey I project, a large-scale solar farm in Spain, and will supply approximately 200,000MWh of renewable electricity to the European grid annually. GKN Automotive will also receive energy attribute certificates (EACs) equivalent to 65% of its 2023 European electricity usage.
Ismael Guerrero, CEO of Recurrent Energy, added, “Recurrent Energy is pleased to support GKN Automotive’s commitment to reach net zero carbon emissions by 2045. Recurrent Energy has a long track record of executing projects at scale for major worldwide customers, and we thank GKN Automotive for trusting us with their first VPPA in Europe.”
GKN Automotive is also exploring additional VPPAs in Europe and South America to further decarbonize its global electricity consumption.
Schneider Electric, a leader in corporate renewable energy procurement and carbon management, advised GKN Automotive in the project selection and VPPA negotiations. John Powers, vice president of global renewables at Schneider Electric, said, “We are excited to support our client in this landmark renewable energy endeavor. This collaboration demonstrates the immense potential of VPPAs in driving sustainability efforts and accelerating the transition to renewable energy on a global scale.”