The Swedish fashion company H&M has signed a power purchase agreement (PPA) for a solar park with Neoen and Alight to power its operations.
The Hultsfred solar project, developed and owned by Neoen and Alight, is scheduled to begin construction in the second half of 2023. Under the long-term agreement, the solar park will provide renewable energy to H&M to reduce the retailer’s carbon footprint.
This is the largest solar PPA in Sweden to date. With a total capacity of at least 90 MWp, the Hultsfred solar park will produce the same amount of electricity consumption of over 16,000 homes each year.
H&M aims to reduce all emissions by 56% and have all its electricity sourced from renewable means by 2030, as well as achieve net zero entirely by 2040.
By contracting in this PPA, H&M will make the project viable and add new green power capacity to the Swedish grid.
The solar farm will use low-carbon photovoltaic panels to be installed around the runway of Hultsfred airport, in the south-east of Sweden.
Ulrika Leverenz, Head of Green Investment of H&M said: “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 the 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.”
“When a large corporation and power user decides to go big on renewable energy, it has a real impact on society as a whole, while at the same time creating more energy security,” Alight CEO Harald Överholm added.