Swedish bearing manufacturer SKF has recently made an important stride in its sustainability strategy by signing a virtual Power Purchase Agreement (VPPA) with Enel, a prominent renewable energy company. The agreement involves the procurement of renewable electricity from Enel's solar project in Spain, contributing to the development of clean energy sources in Europe and the reduction of greenhouse gas emissions.
The solar plant is anticipated to generate over 260 gigawatt-hours (GWh) of renewable electricity annually. It is scheduled to be connected to the power grid by August 2024, ensuring a substantial addition to the region's renewable energy capacity. Through this VPPA, SKF is reinforcing its commitment to the cleantech industry while actively supporting the growth of renewable energy.
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Under the terms of the long-term agreement, SKF will acquire guarantees of origin for a duration of 15 years. These guarantees will be equivalent to the amount of electricity consumed by one-third of SKF's European operations in 2022. By procuring renewable energy through this arrangement, SKF is taking significant strides towards achieving its sustainability objectives.
Joakim Landholm, SKF's Chief Sustainability Officer and Senior Vice President, expressed the company's satisfaction with the agreement, stating, “This agreement is a critical step forward in our strategy. It also demonstrates our commitment to the cleantech industry and support for the growth of the renewable energy industry. This shows that, by working together with others, we can make a real impact in achieving a sustainable future.”
SKF's collaboration with Enel exemplifies the growing trend of companies seeking to establish partnerships and engage in renewable energy initiatives. Such endeavors highlight the concerted efforts of industry players to combat climate change and pave the way for a more sustainable future.
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With the virtual Power Purchase Agreement, SKF is not only securing a stable supply of clean energy but also contributing to the advancement of the renewable energy sector in Europe. By actively pursuing sustainable practices, companies like SKF are setting an example for others and demonstrating the positive impact that can be achieved through collective action.
