Sweden’s H&M signs an agreement to open a new solar park
Under the long-term agreement, the solar park, located in Hultsfred, Sweden, will provide the H&M group with local renewable energy and guarantees of origin, taking the company one step closer to its goal of only purchasing renewable electricity. The project is jointly developed and owned by Neoen (majority owner) and Alight and will have a total capacity of at least 90 MWp. It will be built with solar panels with low carbon dioxide emissions to be installed around the runway at Hultsfred Airport in southeastern Sweden. Construction is planned for the second half of 2023, with commissioning in 2025, H&M said in a media statement.
The H&M Group has set the ambitious goal of reducing the company’s absolute scope 1 and 2 emissions and its scope 3 emissions by 56 percent both by 2030 and from the 2019 baseline and to increase annual renewable electricity purchases to 100 percent by 2030 As part of the company’s green investments, the energy purchase agreements play a very important role in the company’s climate work to achieve its goals. By contracting in this PPA, the H&M group will make the project profitable and add new green power capacity to the Swedish grid.
Neoen, a leading producer of exclusive renewable energy, and Alight, a solar energy developer and independent power producer in Europe, have signed a power purchase agreement (PPA) for 90 MWp of green energy in Sweden with a multinational clothing company that focuses on fast-fashion clothing, the H&M group . This is the largest solar energy PPA that has been contracted in Sweden to date.
“We are very happy to see Hultsfred’s solar park become a reality in the near future. Renewable energy plays a critical role in our climate roadmap to reduce emissions and achieve net zero by 2040. Companies and countries must show leadership to limit global warming to 1.5°C as climate science tells us to do. Power purchase agreements like this with Neoen and Alight take us one step closer to our ambitious climate goals and increase the availability of clean energy in the country.” Ulrika Leverenz, head of Green Investment in the H&M groupsaid.
“We are very proud of our collaboration with Neoen and H&M group to sign a power purchase agreement that allows us to quickly build new clean electricity in southern Sweden, where the demand for electricity is the greatest. When a large company and energy user decides to invest heavily in renewable energy, it has a real impact on society as a whole, while creating more energy security.” Harald Överholm, CEO of Alightsaid.
“I would like to thank the H&M Group for the trust they have shown in us and congratulate our local team and our partner Alight on signing this agreement. This is our first power purchase agreement in Sweden and our ninth in the Nordics. Our long-standing contracts in the region now include almost half a gigawatt of renewable energy, demonstrating once again our ability to meet the needs of companies like the H&M Group and provide them with a secure supply of competitive, local renewable energy.” Xavier Barbaro, CEO and Chairman of the Board of Neoensaid.
Fibre2Fashion News Desk (GK)