Automobile manufacturer Honda has signed a 320MW virtual power purchase agreement in North America for electricity from a wind farm in Oklahoma and a solar farm in Texas.
In the third quarter of 2020, 120MW of electricity will be sourced from Eon’s 150MW Boiling Springs wind farm, with a further 200MW coming a year later from an unnamed seller and solar farm in Texas.
Honda will receive 530,000 megawatt-hours a year of wind power and 482,000MWh of solar energy.
Additional details about the Texas solar facility will be disclosed in 2020 when it is nearer to completion, Honda said.
The deals will cover 60% of the electricity used by the company in North America at its facilities in Ohio, Indiana, and Alabama.
Honda will continue to purchase electricity from the local utility for each manufacturing facility, but will receive and retire renewable energy certificates equal to the power produced through the VPPAs.
Currently, 21% of the electricity that Honda uses in North America is supplied from low and zero CO2 sources.
American Honda connected and environmental business development manager Ryan Harty said: “These combined VPPAs will help Honda meet its CO2 reduction goals by adding clean renewable electricity and by de-carbonising the electricity grid.
“We hope the addition of a ‘collar’ to the Boiling Springs project will encourage other companies to consider VPPAs as a method to secure renewable power and reduce climate-altering carbon emissions.”
Eon chief operating officer North America Silvia Ortin said: “We are proud to work with Honda to provide 100% clean, renewable wind power from Boiling Springs wind farm for its North American manufacturing facilities.
“Eon’s dedication to a sustainable future is a great fit with Honda’s values and commitment to reducing its greenhouse gas impact.”