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GKN Automotive's New VPPA With Recurrent Energy Targets 65% Renewable Electricity In Europe
GKN Automotive has entered into a Virtual Power Purchase Agreement (VPPA) with Recurrent Energy, covering 65% of its European electricity needs. This agreement is crucial for meeting the company's Science-Based Targets initiative (SBTi) goals to cut direct Greenhouse Gas (GHG) emissions by 45% by 2030 and achieve net zero across its entire value chain by 2045. The VPPA will supply around 2 million megawatt-hours (MWh) of renewable electricity to the European grid over a decade.
The collaboration with Recurrent Energy, a subsidiary of Canadian Solar, will establish the Rey I project, a new large-scale solar farm in Spain. This project will contribute approximately 200,000 MWh of renewable electricity annually to the European grid, totalling about 2 million MWh over ten years. GKN Automotive will receive Energy Attribute Certificates (EACs) equivalent to 65% of its European electricity usage in 2023.
This agreement marks a significant step towards GKN Automotive's commitment to using more renewable energy. By 2025, the company aims to use 50% renewable electricity globally and increase this to 75% by 2030. Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive, stated: "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, commented on the partnership: "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 played an advisory role in this 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 endeavour. This collaboration demonstrates the immense potential of VPPAs in driving sustainability efforts and accelerating the transition to renewable energy on a global scale."
The VPPA enables GKN Automotive to influence the mix of electricity on national grids, promoting greener energy use. Through these agreements, GKN Automotive supports creating and expanding renewable energy projects across Spain, further decarbonising Europe's electricity supply.
Future Plans
GKN Automotive is actively seeking additional VPPAs across Europe and South America. These efforts aim to further reduce its global operations' carbon footprint by increasing reliance on renewable energy sources.
The electricity generated through this agreement is considered "additional." Without this collaboration between GKN Automotive and Recurrent Energy, constructing such a large-scale renewable energy site would not occur.
About GKN Automotive
GKN Automotive is a leading global automotive technology company known for innovation since its origins in 1759. For over seven decades, it has been producing key technologies for series production. The company specialises in developing market-leading drive systems and advanced ePowertrain technologies.
GKN Automotive leads in sideshaft technology; eight out of ten best-selling cars outside China use its sideshafts. Over two million electrified vehicles worldwide are powered by its eDrive system introduced over two decades ago.
About Schneider Electric
Schneider Electric focuses on empowering people to make the most of their energy resources while bridging progress and sustainability for all. The company offers integrated end-to-end lifecycle AI-enabled Industrial IoT solutions with connected products and services.
With an ecosystem comprising 150,000 colleagues and over a million partners operating in more than 100 countries, Schneider Electric ensures proximity to customers and stakeholders while embracing diversity and inclusion.
This partnership between GKN Automotive and Recurrent Energy signifies a strong commitment towards achieving net-zero carbon emissions by leveraging innovative solutions like VPPAs.
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