TotalEnergies has inked a 15-year Renewable Power Purchase Agreement (PPA) with Saint-Gobain, marking a pivotal move in the quest to decarbonize the power consumption of Saint-Gobain's 125 industrial sites across North America. This agreement, the second of its kind, underscores TotalEnergies' commitment to delivering tailor-made renewable energy solutions to global businesses, aligning with its prior partnerships with industry leaders like Air Liquide, Amazon, Merck, Microsoft, Orange, and Sasol.
Under this 100 MW PPA, TotalEnergies will supply clean energy sourced from its Danish Fields Solar farm in Texas. This initiative is set to substantially offset Saint-Gobain's North American Scope 2 CO2 emissions from electricity, reducing them by a staggering 90,000 metric tons annually. The Danish Fields Solar farm, boasting a formidable 720 MW capacity, is slated to commence operations in 2024, positioning itself as TotalEnergies' largest utility-scale operated solar farm in the United States. An intriguing element of this contract is the inclusion of an upside sharing mechanism, whereby the two companies will jointly benefit from potential market price increases over the contract's duration.
Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies, expressed enthusiasm about the collaboration, stating, “We are truly excited to reinforce our collaboration with Saint-Gobain with this new clean energy commitment and therefore contribute to their carbon neutrality roadmap. TotalEnergies' growing solar power generation portfolio in the U.S. provides concrete solutions enabling our industrial customers to decarbonize their electricity consumption. The signing of upside sharing CPPAs contributes to the objective of profitable growth for our Integrated Power business.”
Mark Rayfield, CEO of Saint-Gobain North America, shared his perspective on the agreement, saying, “With this agreement, Saint-Gobain North America will further reduce its CO2 emissions, demonstrating how fast the manufacturing industry can transform when long-term solutions are at hand. This renewable energy project is a new milestone on the way to meeting Saint-Gobain's commitment to reduce scope 1 and 2 CO2 emissions by 33% by 2030 – compared to 2017 – and to reach carbon neutrality by 2050.”
TotalEnergies has solidified its position as one of the premier renewable energy developers in the United States. The company boasts a diversified portfolio encompassing large-scale solar, storage, onsite B2B solar distributed generation, onshore, and offshore wind projects, with the potential to generate up to 10 GW of renewable power by 2025 and an impressive 25 GW by 2030.
