H&M Signs Solar PPA Enabling New Renewable Energy Construction in Texas
H&M Group announced that it has signed a new virtual power purchase agreement (VPPA) with solar project developer and operator Lightsource bp, supporting the fashion and design brands company’s climate and clean energy goals, and enabling construction of new renewable energy infrastructure in Texas.
The agreement follows the launch of a partnership between H&M and Lightsource bp in 2021, including a commitment to a multi-year power contract for projects that are contributing to the growth of the renewable sector.
Under the new agreement, Lightsource bp will provide energy from its 125MW Second Division solar project in Texas, currently under construction in Brazoria County, and expected to be operational by the end of 2024. According to the companies, the project will reduce carbon emissions by an estimated 155,000 metric tons annually.
Additional environmental attributes of the new project include a goal to increase biodiversity within the first 5 years of operation through the planting of site-specific grasses and other vegetation under and around the solar panels, and the integration of agriculture in the form of sheep grazing, with the solar farm infrastructure for the project taking up less than 10% of the land.
Helen Brauner, Interim Chief Operating Officer at Lightsource bp USA, said:
“Corporate energy buyers with sustainability goals such as H&M are not only making a meaningful positive impact on our environment. They are enabling the construction of new, home-grown lower carbon energy infrastructure that supports energy diversification, grid reliability, and local economies.”
H&M Group has set goals to source 100% renewable electricity in its own operations by 2030, and to achieve net zero emissions by 2040. The company also has a target for at least 50% of its sourced renewable electricity to come from PPAs with new electricity generation, to support increased renewable electricity generation capacity on electrical grids in markets where the company operates.
Ulrika Leverenz, Head of Green Investment at H&M Group, said:
“Considering fashion’s environmental impact, we see great value in moving away from just using certificates to contributing to more clean energy. By partnering with solar and wind farm developers, we can help build renewable electricity capacity in power grids around the world.”