GKN Automotive signs VPPA with Recurrent Energy

As part of its commitment to sustainable energy practices, GKN Automotive, a world leader in powertrain systems, has entered into a 10-year Virtual Power Purchase Agreement (VPPA) with Recurrent Energy, a subsidiary of Canadian Solar. The agreement represents a significant step in GKN Automotive’s commitment to decarbonize its electricity consumption.

The VPPA will cover 65% of GKN Automotive’s European electricity load and 30% of its global load, which is in line with the company’s goal of using 50% renewable energy globally by 2025 and 75% by 2030. The agreement includes the creation of The Rey I project, a new large-scale solar farm in Spain that will contribute to increasing the supply of renewable energy to the Spanish grid.

The project is expected to deliver around 200,000 MWh of renewable energy to the European grid annually, totalling around 2 million MWh over the 10-year contract. GKN Automotive will receive Energy Attribute Certificates (EACs) equivalent to 65% of its European electricity consumption in 2023.

“The signing of this VPPA with Recurrent Energy underlines our commitment to achieving our net zero emissions target by 2045 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 create a cleaner, more sustainable world by supporting projects that contribute to the supply of renewable energy.”

Ismael Guerrero, CEO of Recurrent Energy, expressed his company’s delight with the partnership, saying: “Recurrent Energy is pleased to support GKN Automotive’s commitment to achieving net zero carbon emissions by 2045. This virtual power purchase agreement is an example of both companies’ commitment to investing in renewable energy projects that not only benefit operations but also contribute to the broader goal of combating climate change.”

The agreement was facilitated by Schneider Electric, a world leader in corporate renewable energy procurement. John Powers, Vice President, Global Renewables, Schneider Electric, commented on the collaboration, stating, “We are excited to support our customer in this groundbreaking renewable energy endeavor. This collaboration demonstrates the tremendous potential of VPPAs to drive sustainability efforts and accelerate the transition to renewable energy on a global scale.”

This VPPA is a key element of GKN Automotive’s strategy to reduce direct greenhouse gas emissions by 45% by 2030 and achieve net zero emissions across its entire value chain by 2045. The company is actively pursuing further VPPAs in Europe and South America to further decarbonise its global operations.