GKN Automotive signs VPPA with Recurrent Energy

GKN Automotive, a world leader in powertrain systems, has announced a significant step towards decarbonising its electricity consumption by signing a Virtual Power Purchase Agreement (VPPA)¹ with global renewable energy developer and subsidiary Canadian Solar, Recursive energy.

The ten-year VPPA will cover 65% of GKN Automotive’s electricity requirements in Europe and 30% globally, contributing significantly to the company’s commitment to source 50% of its electricity from renewable sources by 2025 and 75% by 2030.

The joint agreement with Recurrent Energy will create the Rey I project, a new² a large solar farm in Spain that will contribute to increasing the supply of renewable energy to the Spanish electricity grid while decarbonizing the European electricity grid.

The project will facilitate the delivery of around 200,000 MWh of renewable energy to the European electricity grid per year, reaching 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.

This development is a key step towards achieving the company’s SBTi-approved targets to reduce direct greenhouse gas (GHG) emissions (Scope 1 and 2) by 45% by 2030 and achieve net zero emissions across the entire value chain by 2045.

GKN Automotive is actively pursuing further VPPAs in Europe and South America with the aim to further decarbonise electricity consumption across its global operations.

Dr Clare Wyatt, Director of People, Communications and Sustainability at GKN Automotive, said: “The signing of this VPPA with Recurrent Energy underscores our commitment to achieving our net zero emissions ambition by 2045 and contributing to the decarbonization of the industry. It reflects our intention to continue to create a cleaner, more sustainable world by supporting projects that increase the supply of renewable electricity.”

Ismael Guerrero, CEO of Recurrent Energy added: “Recurrent Energy is pleased to support GKN Automotive’s commitment to achieving net zero carbon emissions by 2045. Recurrent Energy has a long history of delivering large-scale projects for major customers around the world and we thank GKN Automotive for trusting us with their first VPPA in Europe. This VPPA is an example of both companies’ commitment to investing in renewable energy projects that not only benefit operations but also contribute to the wider goal of combating climate change.”

Schneider Electric, a world leader in renewable energy supply and carbon management for businesses, advised GKN Automotive on the project selection and VPPA negotiations. John Powers, vice president of global renewables at Schneider Electric, said: “We are excited to support our customer in this groundbreaking renewable energy endeavor. This partnership demonstrates VPPA’s tremendous potential to drive sustainability efforts and accelerate the transition to renewable energy on a global scale.”

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