GKN Automotive signs Virtual Power Purchase Agreement with
Recurrent Energy, covering 65% of European electricity load
- GKN Automotive has signed a Virtual
Power Purchase Agreement (VPPA) with Recurrent Energy covering 65%
of its European electricity load
- This development is a key step in
the company’s SBTi-approved targets to reduce its direct Greenhouse
Gas (GHG) emissions (Scope 1 and 2) by 45% by 2030 and achieve net
zero across the entire value chain by 2045
- The agreement facilitates the supply
of approximately 2 million megawatt-hours (MWh) of renewable
electricity to the European grid over a 10-year period
LONDON, July 10, 2024 (GLOBE NEWSWIRE) -- GKN
Automotive, the global leader in drive systems, has announced a
significant step towards decarbonising its electricity usage by
signing a Virtual Power Purchase Agreement
(VPPA)1 with global
renewable energy developer and subsidiary of Canadian
Solar, Recurrent Energy.
The 10-year VPPA agreement will cover 65% of GKN Automotive’s
European electricity load and 30% of its global load, significantly
contributing to the company’s commitment to using 50% renewable
electricity globally by 2025 and 75% by 2030.
The joint agreement with Recurrent Energy will establish The Rey
I project, a new2 large-scale solar farm in Spain, which
will contribute towards the increased supply of renewable
electricity to the Spanish grid – simultaneously contributing to
the decarbonisation of the European grid.
The project will facilitate the supply of approximately 200,000
MWh of renewable electricity to the European grid annually,
reaching approximately 2 million MWh over the 10-year agreement.
GKN Automotive will receive Energy Attribute Certificates (EACs)
equivalent to 65% of its European 2023 electricity usage.
This development is a key step in the company’s SBTi-approved
targets to reduce its direct Greenhouse Gas (GHG) emissions (Scope
1 and 2) by 45% by 2030 and achieve net zero across its entire
value chain by 2045.
GKN Automotive is actively pursuing further VPPAs across Europe
and South America, with the aim of further decarbonising its
electricity usage across its global operations.
Dr. Clare Wyatt, Chief People, Communications &
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
decarbonisation 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.”
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. This virtual power
purchase agreement exemplifies the dedication of both companies to
invest in renewable energy projects that not only benefit
operations but also contribute to the broader goal of combatting
climate change.”
Schneider Electric, a global leader in corporate renewable
energy procurement and carbon management, advised GKN Automotive in
the project selection and VPPA negotiations. John Powers,
Vice President, 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."
1 Virtual Power Purchase Agreements enable companies
like GKN Automotive to influence the mix of electricity on national
grids, helping to secure the wider use of greener energy. Through
these agreements, GKN Automotive will support the creation and
expansion of renewable energy projects across Spain to further
decarbonise the electricity supply to the European grid. In return,
the company will receive Energy Attribute Certificates (EACs)
equivalent to 65% of the energy use across all its European
sites.
2The electricity generated through this agreement is
“additional”, meaning that without the collaboration between both
parties in this instance, an entirely new large-scale renewable
energy site would not undergo construction.
ABOUT GKN AUTOMOTIVE
GKN Automotive is a world-leading global automotive technology
company at the forefront of innovation. Its origins date back to
1759 and for the last 70 years it has bee n putting key
technologies into series production. It is the trusted partner for
most of the world’s automotive companies, specialising in
developing, building, and supplying market-leading drive systems
and advanced ePowertrain technologies.
It is the global leader in sideshafts, with eight out of ten of
the world’s best-selling cars outside China using its sideshaft
technology. GKN Automotive’s first eDrive system was fitted to a
production car over 20 years ago; today, over two million
electrified vehicles worldwide are powered by this technology.
GKN Automotive is part of Dowlais Group plc, a specialist
engineering group focused on the automotive sector.
https://www.gknautomotive.com
For further information, please
contact:
GKN Automotive
Corrie Raine
External Communications Manager
Email: corrie.raine@gknautomotive.com
About Schneider Electric
Schneider’s purpose is to create Impact by empowering all
to make the most of our energy and resources, bridging
progress and sustainability for all. At Schneider, we call
this Life Is On.
Our mission is to be the trusted partner in Sustainability
and Efficiency.
We are a global industrial technology leader bringing
world-leading expertise in electrification, automation and
digitization to smart industries,
resilient infrastructure, future-proof data centers,
intelligent buildings, and intuitive homes. Anchored by
our deep domain expertise, we provide integrated end-to-end
lifecycle AI enabled Industrial IoT solutions with connected
products, automation, software and services, delivering digital
twins to enable profitable growth for our customers.
We are a people company with an ecosystem of 150,000
colleagues and more than a million partners operating in over 100
countries to ensure proximity to our customers and stakeholders. We
embrace diversity and inclusion in everything we do,
guided by our meaningful purpose of a sustainable future for
all.
www.se.com
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Director of Creative & Communications Services:
Shannonlappin.davies@se.com
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