GKN Automotive Accelerates Sustainability with Major Virtual Power Purchase Agreement
London, UK, 10 July 2024 – GKN Automotive, a global leader in drive systems, has made a significant stride in its sustainability journey by signing a Virtual Power Purchase Agreement (VPPA) with Recurrent Energy, a leading renewable energy developer and subsidiary of Canadian Solar.
This 10-year agreement is a pivotal step towards GKN Automotive’s ambitious goals to reduce direct Greenhouse Gas (GHG) emissions (Scope 1 and 2) by 45% by 2030 and to achieve net zero across its entire value chain by 2045. The VPPA will cover 65% of the company’s European electricity load and 30% of its global electricity needs, aligning with their targets of using 50% renewable electricity globally by 2025 and 75% by 2030.
Under the agreement, Recurrent Energy will develop the Rey I project, a large-scale solar farm in Spain. This project will add approximately 200,000 megawatt-hours (MWh) of renewable electricity annually to the European grid, culminating in around 2 million MWh over the duration of the contract. GKN Automotive will receive Energy Attribute Certificates (EACs) equivalent to 65% of its 2023 European electricity consumption, significantly advancing its renewable energy utilization.
Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive, emphasized the importance of this agreement: “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, expressed his support for GKN Automotive’s green initiatives: “Recurrent Energy is pleased to support GKN Automotive’s commitment to reach net-zero carbon emissions by 2045. Our long track record of executing projects at scale for major worldwide customers stands as a testament to our capability, 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, stated: “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.”
GKN Automotive is actively pursuing additional VPPAs across Europe and South America to further decarbonise its electricity usage and support its global operations’ sustainability goals. This agreement marks a crucial milestone in GKN Automotive’s ongoing efforts to lead the automotive industry towards a more sustainable future.
