In a move towards sustainable energy practices, GKN Automotive, a global leader in drive systems, has entered into a 10-year Virtual Power Purchase Agreement (VPPA) with Recurrent Energy, a subsidiary of Canadian Solar. This agreement marks a major step in GKN Automotive’s commitment to decarbonize its electricity usage.
The VPPA will cover 65% of GKN Automotive’s European electricity load and 30% of its global load, aligning with the company’s goal to use 50% renewable electricity globally by 2025 and 75% by 2030. The agreement involves the establishment of The Rey I project, a new large-scale solar farm in Spain, which will contribute to the increased supply of renewable electricity to the Spanish grid.
The project is expected to supply approximately 200,000 MWh of renewable electricity to the European grid annually, totaling about 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.
“Signing this VPPA with Recurrent Energy underscores our commitment to achieving our 2045 net zero ambition and contributing to the decarbonisation of the industry,” says Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive. “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, expressed his company’s satisfaction with the partnership, saying, “Recurrent Energy is pleased to support GKN Automotive’s commitment to reach net-zero carbon emissions by 2045. 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.”
The agreement was facilitated by Schneider Electric, a global leader in corporate renewable energy procurement. John Powers, Vice President of Global Renewables at Schneider Electric, commented on the collaboration, stating, “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.”
This VPPA is a key component of GKN Automotive’s strategy to reduce its direct Greenhouse Gas emissions by 45% by 2030 and achieve net zero across its entire value chain by 2045. The company is actively pursuing further VPPAs across Europe and South America to further decarbonize its global operations.
