GKN Automotive signs Virtual Power Purchase Agreement with Recurrent Energy, covering 65% of European electricity load

Posted on 10 Jul 2024 by The Manufacturer

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) 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 new 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.”

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