General Motors (GM) announced it has entered a 15-year power purchase agreement (PPA), signing on to purchase electricity generated by a 180 MW solar project.
The agreement with solar developer NorthStar Clean Energy will enable GM to power three of its assembly plants with clean energy. The project in Newport, Arkansas, will support the electricity needs of GM’s Lansing Delta Township Assembly and Lansing Grand River Assembly in Michigan, and the Wentzville Assembly site in Missouri.
The Newport Solar project is expected to generate enough electricity to power over 30,000 homes per year.
“By expanding our renewable electricity portfolio, we are taking a major step forward in reducing our carbon footprint and advancing our broader sustainability goals,” said Rob Threlkeld, GM director of global energy strategy. “This facility not only supports our renewable electricity strategy, but also demonstrates our dedication to a sustainable future for all.”
The project won’t directly power GM plants, but rather will provide GM with renewable energy certificates (REC) that help the company achieve its state environmental, social, and governance goals. Such REC contracts are often facilitated by Southeast U.S. states, where the grid has some of the worst carbon pollution in the nation.
While RECs help attract investment and development in these regions, critics have warned that they are misleading in the purported environmental benefits. Projects often sell electricity and RECs as two separate assets.
GM now has sourcing agreements with 17 renewable energy projects across 11 states. BloombergNEF lists GM as the automotive industry’s largest buyer of renewable power capacity.
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