FORVIA accelerates on renewable energy
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The company is expanding renewable electricity portfolio to reach net-zero CO2 emissions by 2045
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This new PPA will generate the equivalent of 210 GWh of renewable electricity per year
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Advised from Schneider Electric, FORVIA contracted with Octopus Renewables and Mirova to carry out this project
Faurecia, a company of the group FORVIA, the world’s 7th largest automotive technology company, today announced the signing of a power purchase agreement (PPA) of Europe’s largest investors in renewable energy, Octopus Energy Generation and Mirova*, a management company dedicated to sustainable investment and an affiliate of Natixis Investment Managers. The installed capacity of the project reaches 85.8 megawatts (MW). The wind turbines are located in Alingsas, Sweden. This agreement will support FORVIA’s plan to reach net-zero CO2 emissions by 2045.
“FORVIA is the first automotive company with a net-zero target approved by the Science Based Targets Initiative (SBTi), and maximizing renewable power is a key part of our roadmap to reach our net-zero ambition,” said Rémi Daudin, Sustainable transformation VP at FORVIA. “That additional renewable production capacity will cover about 20% of FORVIA electricity needs in Europe and it will come in operation as early as June 2023. We are delighted to develop alongside leaders in sustainability energy a best-in-class wind power facility to produce clean energy.”
The annual electricity production of this wind farm will be equivalent to the consumption of approximately 56,000 French households**.
Schneider Electric supported FORVIA in the selection of and negotiations for this project.
“The future needs to be both sustainable and mobile. We’re excited to partner with an automotive technology company so committed to injecting sustainable solutions into their energy portfolio”, said Steve Wilhite, President of Schneider’s Sustainability Business. “The entire market is stepping up to find a sustainable way forward and FORVIA is showing how this ethos can be inserted practically in all aspects of a business.”
“We are happy to have signed this long-term Power Purchase Agreement with FORVIA for our 85.8MW Swedish wind project Rodene,” said Olena Reznik, Investment Director at Mirova. “It allows both to participate in FORVIA ambitious decarbonization strategy and to hedge part of exposure to merchant electricity risk. It is an important contract for Mirova Eurofideme 4 as it constitutes the first corporate PPA signed by an asset of this fund. It also demonstrates the major role the corporates will have to play in the energy transition.”
“Electricity supply deals like these are an important step in helping businesses meet vital decarbonization targets. Through investments like the stake our Sky fund (ORI SCSp) has in this Swedish wind farm, we're helping to accelerate businesses' transition to a greener energy system," said Alex Brierley, co-head of Octopus Energy Generation’s fund management team.
FORVIA has announced a plan to reach net-zero CO2 emissions by 2045 – an objective corresponding to the most ambitious standard of the SBTi. As part of this ambition, the company is committed to reduce 80% of absolute scopes 1 and 2 GHG emissions by 2025, 45% of absolute scope 3 in 2030 and 90% of absolute scopes 1, 2 and 3 by 2045 from a 2019 base year.
* Through Mirova Eurofideme 4 Fund - MIROVA EUROFIDEME 4 is a French limited partnership (Société de Libre Partenariat), closed to new subscription. Mirova is the management company. The supervisory authority approval is not required for this fund. The Fund is exposed to capital loss risk, market risks, industrial and public counterparty risk, credit risk, liquidity risk, project risk, operational risk, compliance risk, legal and regulatory risk, financial risk, electricity transmission and distribution network risk, valuation risk, deal flow risk.
** Source: average household consumption (direct consumption) 3.8Mh/year - data.gouv.fr - April 2022