GKN Automotive, a leading global authority in drive systems, has made a significant stride towards a more environmentally conscious future. The company has recently entered into a Virtual Power Purchase Agreement (VPPA) with Recurrent Energy to cover 65% of its electricity consumption in Europe. This strategic decision is in line with GKN Automotive’s ambitious targets, which include a 45% reduction in direct Greenhouse Gas (GHG) emissions by 2030 and achieving net zero emissions across its entire value chain by 2045.
The 10-year VPPA agreement not only encompasses the majority of GKN Automotive’s electricity consumption in Europe but also contributes to 30% of its global consumption. This commitment is substantial and aligns with the company’s objective of sourcing 50% of its electricity from renewable sources worldwide by 2025, increasing to 75% by 2030.
The VPPA with Recurrent Energy will support The Rey I project, a pioneering large-scale solar farm located in Spain. This project will significantly bolster the supply of renewable electricity to the European grid and play a crucial role in decarbonizing the European electricity supply. Over the course of 10 years, it is expected to facilitate the provision of approximately 200,000 MWh of renewable electricity annually, eventually reaching around 2 million MWh.
This groundbreaking development is integral to GKN Automotive’s pursuit of its SBTi-approved targets and its role as a key player in the fight against climate change. Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive, emphasized, “By entering into this VPPA with Recurrent Energy, we are reinforcing our commitment to achieving our 2045 net-zero ambition and contributing to industry decarbonization. It reflects our intention to continue promoting a cleaner, more sustainable world by supporting projects that increase the supply of renewable electricity.”
Recurrent Energy CEO Ismael Guerrero expressed his appreciation for the collaboration, stating, “Recurrent Energy is delighted to support GKN Automotive’s commitment to achieving 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 combating climate change.”
To strengthen this significant step, Schneider Electric, a global leader in corporate renewable energy procurement and carbon management, provided advisory support to GKN Automotive in the project selection and VPPA negotiations. John Powers, Vice President, Global Renewables at Schneider Electric, is enthusiastic about being part of this milestone renewable energy initiative and emphasized the potential of VPPAs in driving sustainability efforts and accelerating the global transition to renewable energy.
This strategic collaboration between GKN Automotive and Recurrent Energy will undoubtedly enhance the supply of renewable energy in Europe and will have a profound impact on the global efforts to combat climate change. As they continue their commitment to utilizing greener energy sources and decarbonizing their operations, GKN Automotive sets an exemplary standard for sustainability in the automotive industry.