Dive Brief:
- Car manufacturer General Motors announced Thursday it signed a 15-year renewable power purchase agreement with NorthStar Clean Energy, which helps companies work toward their sustainability goals. The deal will support GM’s operations at three U.S. assembly plants.
- The deal will allow GM to source renewable electricity from NorthStar’s 180-megawatt solar project in Newport, Arkansas. The Newport Solar site is expected to generate enough electricity to power 30,000 homes annually, per the companies.
- The solar PPA will support the automaker’s operations at its Lansing Delta Township Assembly and Lansing Grand River Assembly plants in Michigan, and the Wentzville Assembly plant in Missouri, according to a release.
Dive Insight:
GM — which houses car brands Cadillac, Chevrolet, Buick and GMC under its umbrella — said the deal is its largest PPA yet and builds on its sustainability strategy that includes a goal to become carbon neutral in its products and operations by 2040.
In 2022, the American carmaker said it had finalized the agreements needed to procure 100% renewable electricity for all its U.S. sites by the end of 2025. GM said in its 2023 sustainability report that this clean energy procurement would also help the company work toward its scope 1 and scope 2 emissions goals. The company aims to reduce those emissions by 72% by 2035 compared to a 2018 baseline.
“By expanding our renewable electricity portfolio, we are taking a major step forward in reducing our carbon footprint and advancing our broader sustainability goals,” GM’s director of global energy strategy Rob Threlkeld said in the release. “This facility not only supports our renewable electricity strategy, but also demonstrates our dedication to a sustainable future for all.”
GM currently has 17 renewable energy plants operating across 11 states — a figure it said makes it the automotive sector’s largest purchaser of renewable power by capacity.
Though the car manufacturer has made headwinds in its clean energy procurement, it recently shot down three ethical supply chain proposals. Earlier this year, GM shareholders overwhelmingly voted against proposals requiring reports on child labor in the electric vehicle supply chain, deep-sea mineral mining and transparency of sustainability risks, according to a 2024 proxy statement.
