Auto giant GM announced that it has signed a 15-year renewable energy purchase agreement with NorthStar Clean Energy, a division of CMS Energy, to power three GM assembly plants, reports esgtoday.com.
The announcement marks GM's largest energy purchase deal to date and an important milestone in the company's goal to be carbon neutral by 2040, according to the company.
In 2022, GM announced that it had finalized the sourcing agreements needed to provide 100% of the energy needed to power all of its US sites with renewable electricity by the end of 2025, five years ahead of its previous goal of 2030, set just months earlier.
Ambitious goals for sustainable development
With the new purchase agreement, GM now has supply agreements from 17 renewable energy plants in 11 states, making the company the largest buyer of renewable energy in the auto industry by capacity.
“By expanding our renewable electricity portfolio, we are taking a big step forward in reducing our carbon footprint and achieving our more ambitious sustainability goals. This facility not only supports our renewable electricity strategy, but also demonstrates our commitment to a sustainable future for all," said Rob Threlkeld, GM's director of global energy strategy.
Under the new agreement, NorthStar's 180 MW Newport Solar project in Newport, Arkansas, will add renewable energy directly to the grid that supports the electricity needs of GM's Lansing Delta Township Assembly and Lansing Grand River Assembly in Michigan, as well as the Wentzville Assembly site in Missouri.
“NorthStar is committed to helping our customers achieve their sustainability and business goals, and the Newport Solar project demonstrates how our approach enables companies like General Motors to achieve both. The collaboration with GM exemplifies our shared commitment to creating a future powered by renewable energy,” said Brian Hartman, president of NorthStar Clean Energy.
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