Swedish first fashion retailer H&M group signed a power purchase agreement (PPA) with Neoen and Alight for 90 MWp of green energy.
Neoen, a leading producer of exclusively renewable energy, and Alight, a solar developer and independent power producer in Europe will provide H&M group with local renewable energy.
Under the long-term agreement, they will ensure guarantee of origin, putting the H&M one step closer to its goal to only source renewable electricity.
Also, for developing and owned by Neoen and Alight, the project will have a total capacity of at least 90 MWp, and will be built using low-carbon photovoltaic panels to be installed around the runway of Hultsfred airport, in the south-east of Sweden.
Construction is planned for the second half of 2023, with commissioning to follow in 2025, H&M said in a media statement.
H&M took the initiative, to reduce the company’s absolute scope 1 and 2 emissions and its scope 3 emissions by 56 percent both by 2030 and from a 2019 baseline and to increase the annual sourcing of renewable electricity to 100 percent by 2030.
Xavier Barbaro, CEO and chairman of Neoen said, “I would like to thank the H&M group for the trust they have placed in us and congratulate our local team and our partner Alight on the signing of this agreement. This is our first power purchase agreement in Sweden and our ninth in the Nordics.”
“Our longstanding contracts in the region now cover almost half a gigawatt of renewable energy, showing once again our ability to meet the needs of companies like H&M group and provide them with a secure supply of competitive, local renewable energy.”
Notably, by the contract with PPA, the company will make their project valuable with the green power capacity to the Swedish grid.
“We are very excited to see Hultsfred’s solar park becoming a reality in the near future. Renewable energy plays a crucial role in our climate roadmap to reduce emissions and achieve net-zero by 2040. Business and countries must show leadership to limit global warming to 1.5°C according to what climate science urges us to do. Power purchase agreements like this one with Neoen and Alight bring us one step closer to meet our ambitious climate goals and increase the availability of clean energy in the country,” Ulrika Leverenz, head of Green Investment of H&M group, said.
Harald Överholm, CEO of Alight said, “We are very proud of our partnership with Neoen and H&M group for signing a power purchase agreement that enables us to rapidly build new clean electricity in Southern Sweden, where the demand for electricity is the highest.”
When a large corporation and power user decides to go big on renewable energy, it has a real impact on society as a whole, so in has to be needed to create energy security.
