H&M Group has extended its partnership with solar power leader Lightsource bp by signing a virtual power purchase agreement (VPPA) for a 125MW solar project in Texas.
Renewable energy delivered by the Second Division project will provide power for an estimated 20,500 homes and reduce annual carbon dioxide emissions by 155,000 metric tons – equivalent to taking 33,000 fossil fuel-powered cars off the road.
A VPPA is an agreement between a buyer and an energy producer in which the buyer agrees to purchase energy from a specific project at a fixed price for a set period of time.
They enable developers like Lighthouse bp to secure funding for new projects. H&M Group doesn’t actually receive the energy produced but can instead use all of the associated renewable energy certificates to offset their carbon emissions.
“Considering fashion’s environmental impact, we see great value in moving away from just using certificates to contributing to more clean energy,” said Ulrika Leverenz, Head of Green Investment at H&M Group. “By partnering with solar and wind farm developers, we can help build renewable electricity capacity in power grids around the world,”
More than half (57%) of consumers want fashion to be more sustainable. For its part, H&M Group aims to use 100% renewable energy to power its operations by no later than 2030 and to achieve net-zero emissions by 2040.
