GKN Automotive Signs Virtual Power Purchase Agreement (VPPA) with Recurrent Energy for European Electricity Load
GKN Automotive Takes a Green Leap with Virtual Power Purchase Agreement
In a world where sustainability is becoming increasingly important, GKN Automotive is leading the way by signing a Virtual Power Purchase Agreement (VPPA) with Recurrent Energy. This agreement covers 65% of the company’s European electricity load and is a significant step towards achieving their ambitious environmental goals.
But how does a VPPA work, and what does it mean for GKN Automotive? Let’s break it down.
A VPPA is a contract between a renewable energy developer and a company looking to offset their carbon footprint. In this case, GKN Automotive has partnered with Recurrent Energy to supply approximately 2 million megawatt-hours of renewable electricity to the European grid over a 10-year period. This renewable energy will come from a new large-scale solar farm in Spain, known as The Rey I project.
By signing this VPPA, GKN Automotive is not only reducing its direct Greenhouse Gas emissions but also contributing to the decarbonization of the European grid. This aligns with the company’s commitment to using 50% renewable electricity globally by 2025 and 75% by 2030. Additionally, the agreement will help GKN Automotive achieve its SBTi-approved targets of reducing GHG emissions by 45% by 2030 and reaching net zero across its entire value chain by 2045.
The partnership with Recurrent Energy is just the beginning for GKN Automotive. The company is actively pursuing further VPPAs across Europe and South America to continue decarbonizing its electricity usage globally.
Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive, emphasized the importance of this VPPA in achieving the company’s sustainability goals. She stated, “Signing this VPPA with Recurrent Energy underscores our commitment to achieving our 2045 net zero ambition and contributing to the decarbonization of the industry.”
Ismael Guerrero, CEO of Recurrent Energy, also expressed his support for GKN Automotive’s sustainability efforts. He highlighted the significance of the VPPA in combatting climate change and praised GKN Automotive for their dedication to renewable energy projects.
Schneider Electric, a global leader in corporate renewable energy procurement and carbon management, played a key role in advising GKN Automotive during the project selection and VPPA negotiations. This collaboration demonstrates the potential of VPPAs in driving sustainability efforts and accelerating the transition to renewable energy on a global scale.
Overall, GKN Automotive’s VPPA with Recurrent Energy marks a significant milestone in the company’s sustainability journey. By investing in renewable energy projects and reducing their carbon footprint, GKN Automotive is setting a positive example for the automotive industry and beyond.
For more information about GKN Automotive and their sustainability initiatives, visit their website at [https://www.gknautomotive.com](https://www.gknautomotive.com).