French automotive technology company Faurecia, a subsidiary of the FORVIA group, has recently entered into a 10-year Power Purchase Agreement (PPA) with Renewable Power Capital (RPC). This agreement marks a significant step in Faurecia's commitment to sustainability and renewable energy.
Under the terms of the deal, Faurecia will secure the majority of the electricity output from the Klevberget onshore wind farm in Sweden. The farm consists of 24 turbines with a total capacity of 417GWh, and its output will account for over 40% of FORVIA's European plant electricity consumption each year.
By combining this new PPA with existing agreements, up to 70% of FORVIA's energy needs, equivalent to 650GWh, will be supplied by renewable electricity generated by a portfolio of 37 wind turbines. Furthermore, Faurecia is also installing solar panels covering 130 hectares at more than 150 of its sites, which will contribute up to 5% of its renewable energy mix.
The Klevberget wind farm, owned by RPC, is situated near Sundsvall in Västernorrland, Sweden. Currently under construction, the project is expected to commence commercial operations in November 2023. Schneider Electric provided advisory services to FORVIA in selecting the project and assisting with negotiations.
Rémi Daudin, Vice President of Sustainable Transformation at FORVIA, expressed his enthusiasm for the PPA, stating, “FORVIA is the first automotive company with a net zero target approved by the Science Based Targets initiative (SBTi). Maximizing our procurement of renewable energy is one of the key priorities in our roadmap towards achieving net-zero emissions. This newly signed PPA in 2022 will enable FORVIA to meet over 70% of its electricity needs in Europe starting from the end of 2023.”
Daudin further added, “We are proud to collaborate with leaders in sustainable energy and swiftly develop top-notch wind power farms that generate clean energy. Together, we are demonstrating that the commitment to climate protection is a shared objective among all parties involved in this agreement.”
Steve Hunter, Head of Power Markets for RPC, highlighted the significance of the virtual PPA, stating, “This agreement aligns with RPC's track record of securing long-term and stable cash flows without the need for subsidies. We have previously signed 10-year PPAs for three Finnish onshore wind projects within the past year. This deal showcases our ability to bring innovative solutions from various markets and match our merchant-led approach to meet FORVIA's requirements. We are pleased to have reached this agreement.”
With this forward-looking PPA, Faurecia and RPC are taking significant strides towards achieving their sustainability goals and driving the transition to clean energy. By collaborating on renewable energy projects, these industry leaders are exemplifying the shared commitment to combatting climate change and promoting a greener future.