Honda Secures Auto Industry’s Largest Renewable Energy Purchase

Honda Secures Auto Industry’s Largest Renewable Energy Purchase

23.09.2019: ... Resulting in 60% Reduction in CO2 Emissions from its North American Manufacturing Operations Two Virtual Power Purchase Agreements (VPPAs) will secure 320 megawatts (MW) of wind and solar power totaling over 1 million megawatt-hours (MWh)

... Resulting in 60% Reduction in CO2 Emissions from its North American Manufacturing Operations

 

    Two Virtual Power Purchase Agreements (VPPAs) will secure 320 megawatts (MW) of wind and solar power totaling over 1 million megawatt-hours (MWh) of renewable electricity annually


    Innovative "collar" structure expands market for renewable energy purchases




Seeking to slash CO2 emissions from its North American manufacturing operations, Honda has entered into long-term virtual power purchase agreements (VPPAs) for renewable wind and solar power that will cover more than 60% of the electricity that Honda uses in North America.



These VPPAs will enable Honda to fully offset the remaining carbon intensive grid-supplied electricity being used in its Ohio, Indiana, and Alabama automobile manufacturing operations,1 and will help the company meet its voluntary carbon reduction goal. As a result of the deal, Honda is one of the top automakers globally in the adoption of renewable energy to power its operations.2



Starting in fall of 2020, Honda will purchase 530,000 MWh/year from 120 MW of wind power generated by the Boiling Springs Wind Farm in Oklahoma, a 150 MW development of the energy company E.ON. Then in fall of 2021, Honda will secure an additional 482,000 MWh/year from 200 MW of solar power generated from a Texas solar facility. Additional details of the Texas solar facility will be disclosed in 2020 when it is nearer to completion.



Honda's combined agreements for the output of 320 MW of renewable generation capacity will result in the purchase of 1.012 million MWh of electricity per year, making it the largest renewable energy procurement commitment for an automaker and one of the largest VPPA commitments in the U.S. market. Once fully operational, these VPPAs will offset more than 800,000 metric tons of CO2e emissions annually, the equivalent of 100,000 U.S. households worth of CO2e emissions from household energy usage.3



Honda will continue to purchase electricity from the local utility for each manufacturing facility, but will receive and retire renewable energy certificates (RECs) equal to the power produced through the VPPAs, resulting in net zero CO2e emissions from electricity use within Honda's Ohio, Indiana, and Alabama manufacturing operations. Currently, 21% of the electricity that Honda uses in North America is supplied from extremely low and zero CO2 sources. The VPPAs will raise the total use of renewable electricity to more than 80% for North America.



A virtual power purchase agreement is a way for Honda to purchase renewable energy in locations where it is unable to purchase renewables from the local electric utility. Honda agrees to purchase electricity from a renewable energy supplier, but the clean energy does not go directly to Honda's facilities; instead it is sold into the electricity grid where the clean power is generated. However, Honda's "virtual purchase" of renewable energy adds more clean energy into the nation's electricity grid. This reduces the amount of electricity generated by fossil fuels, reducing the CO2 emissions of using electricity.



In the process of structuring the Boiling Springs Wind Farm VPPA, Honda implemented an innovative contract structure with the potential to mitigate financial risks in the VPPA market, further expanding the market for corporations like Honda where reduced exposure to energy price risk is desirable. This new "collar" structure sets upper and lower bounds on Honda's exposure to energy market price fluctuations in any given quarter, while resulting in strong and stable revenues for the renewable power operators.



"These combined VPPAs will help Honda meet its CO2 reduction goals by adding clean renewable electricity and by de-carbonizing the electricity grid," said Ryan Harty, manager, Connected and Environmental Business Development, American Honda. "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."



"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," said Silvia Ortin, E.ON Chief Operating Officer North America. "E.ON's dedication to a sustainable future is a great fit with Honda's values and commitment to reducing its greenhouse gas impact."



The wind and solar VPPAs are part of Honda's ongoing efforts to not only purchase renewable power but also to generate renewable power onsite at its North American operations. To date, Honda has installed 7.3 MW of renewable wind and solar power at its facilities across the region.





1 Honda products are made using domestic and globally sourced parts.
2 According to BloombergNEF
3 Based on U.S. EPA carbon equivalencies calculator. Does not include emissions from transportation or household food consumption. (https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator)




- Honda North America also photo
                   

 

Permanent-URL: http://www.automobilsport.com/honda-auto-industry-largest-renewable-energy-purchase---197836.html

23.09.2019 / MaP

More News

New Hydrogen Milestone - Toyota and ride-pooling startup CleverShuttle travel more than 2 million emission-free km in German
23.09.2019
... with the Toyota Fuel Cell Sedan Mirai    Hydrogen ride-pooling service was kicked-off in September 2017    Deployment in Hamburg, Munich and Stuttgart (Germany)    World’s most heavily used hydrogen fleet more >>
Audi aims to reduce CO2 emissions by 30 percent over the vehicle lifecycle by 2025
20.09.2019
Package of measures covers the entire value chain        Bram Schot, Audi CEO: “We recognize a responsibility for our cars over their lifecycles”  Audi and the Volkswagen Group are among the first au more >>
Volkswagen invests in climate protection projects
19.09.2019
...to compensate for unavoidable CO2 emissions  Projects are certified according to highest international standards          First project compensates unavoidable CO2 emissions from the ID.31 electr more >>
Volkswagen Group Appoints Professor Ye Qi to Sustainability Advisory Council
29.08.2019
Ye Qi, professor at the Hong Kong University of Science and Technology, is new member of the Independent Advisory Council     Proven expertise in environmental governance, environmental policy and urb more >>
First UN Trade Forum set to focus on climate crisis and SDGs
15.08.2019
#UNTradeForum (9 - 13 September 2019)WHO: Prime Ministers of Barbados, Saint Lucia and Vanuatu, ministers and senior government officialsHeads of UNCTAD, UN Office of the High Representative for the Least Dev more >>
Audi and Hydro: joint commitment to sustainable aluminum
25.07.2019
Hydro supplies sustainable, ASI-certified aluminum to Audi        Compliance with environmental and social standards in entire chain of custody        Use in the battery housing of the Audi e-tron* electric SUV  more >>
Volkswagen with New Corporate Mission Statement Environment "goTOzero"
10.07.2019
The Volkswagen Group is bundling all its measures in environmental protection under the new "goTOzero" environmental mission statement. Oliver Blume, Member of the Group Board of Management responsible for environmental protection, says: "With the new Group Envi more >>
Ford Turns Plastic Bottles into Carpets to Help Recycle More Than 1 Billion Drinks Containers Every Year
27.06.2019
•    Every Ford EcoSport SUV is fitted with carpets made from hundreds of plastic bottles•    In six years, the bottles used would stretch more than twice around the world•    Every year, Ford's use of recycled plastics globally prevents 1.2 billion bottles being dumped more >>
SEAT - Earth, air, water and fire: the elements of a sustainable factory
06.06.2019
    SEAT has reduced its environmental impact by 34% since 2010 and aims to achieve 50% by 2025    Pavement that reduces pollution, efficient chimneys or the largest solar plant of Europe's automotive industry are just some of the projects    Reducing polluting emission and waste even more is on the horizon more >>
Kia Motors supports communities worldwide with 2019 ‘Green Light Volunteer Week’
05.06.2019
Kia Motors Corporation has carried out a series of volunteer activities across the globe to mark the fifth anniversary of its ‘Green Light Project’ corporate social responsibility program. Over the course of 11 days, nearly a thousand Kia employees took part in ‘Green Light Volunteer Week’, providing valuable community services addressing local issues in various regions. more >>
Porsche takes the step towards being CO2 neutral in Zuffenhausen
02.05.2019
Cogeneration plants running on biogas complete environmentally friendly energy mixHeat and energy produced in house: Porsche has launched two new cogeneration plants in operation in Stuttgart-Zuffenhausen to thus enhance its environmentally friendl more >>
Porsche has reduced CO2 emissions by 75 percent since 2014
05.04.2019
Sustainability: sports car manufacturer making good progress Porsche is on course for success when it comes to sustainability. The sports car manufacturer has reduced th more >>
Forscher bei Flug-Biosprit vor Durchbruch
19.03.2019
Neue, nicht essbare Pflanzen dienen in Zukunft als Rohstoffe für umweltverträgliches Fliegen  Wissenschaftler testen Biosprit für Flugzeuge more >>
BMW Group first auto manufacturer to join Ship Recycling Transparency Initiative
14.03.2019
Company signals commitment to sustainable transport logistics.The BMW Group is the first automobile manufacturer worldwide to join the Ship Recycling Transparency Initiative (SRTI). This independent platform, launched in March 2018 by the Sustainable Ship more >>
Climate-neutral energy for Audi Hungaria
15.02.2019
- photovoltaic system on 160,000 square meters    Joint project of Audi and E.ON in Hungary: biggest rooftop photovoltaic system to be at Audi Hungaria        Approximately 9.5 gigawatt hours more >>
Audi Environmental Foundation presents awards to young researchers
06.02.2019
Future solutions for resource managementphoto caption:  Rüdiger Recknagel, Chief Executive of the Audi Environmental Foundation, (right) and Dean Michael Suda, TUMs Dean of Academic Affairs for Sustainable Resource Management, (left) congratulate th more >>
Volkswagen subsidiary Elli offers Volkswagen Naturstrom® throughout Germany with immediate effect
29.01.2019
Volkswagen Naturstrom® comes from sustainable sources.    Elli (Electric Life) supplies 100 percent CO2-free Volkswagen Naturstrom® to private households and small businesses with and without electric vehicles    TÜV-c more >>
Audi promotes EEBUS Standard for Intelligent Connection of Electric Cars and Buildings
29.01.2019
nvolvement in the EEBUS initiative for intelligent home integration of electric cars        Communication standard establishes uniform language in the Internet of Things        Standard release as part of “Plugfest E-Mobility” at Audi Brussels  more >>
Groupe PSA recognized by CPD as a leader on climate change
24.01.2019
•    Groupe PSA has been highlighted as a global leader on corporate climate action by environmental impact non-profit CDP, achieving a place on the “CDP Climate Change A List”.•    The Groupe has been recognized for its actions to cut emissions, mitigate climate risks and develop the low-carbon economy, based on its more >>
MINI John Cooper Works and MINI John Cooper Works Convertible now also meet Euro 6d-TEMP emissions standard.
19.12.2018
The top athletes of the British premium brand in the small car segment feature a petrol engine particulate filter, which is integrated into the sports exhaust system, from March 2019.The top players in the model range of more >>
BMW Group at UN Climate Change Conference in Katowice 2018.
10.12.2018
Sourcing of 100% green electricity for BMW Group locations in Europe. Strong commitment to climate protection.On the occasion of the UN Climate Change Conference in Katowice, the BMW Group announced that the company is already so more >>
Newly Available to Porsche Drivers: An Individual Contribution towards CO2-neutrality
04.12.2018
Offsetting carbon emissions with Porsche ImpactThe Zuffenhausen-based sports car manufacturer is now offering Porsche Impact, an emissions calculator. The tool enables customers to determine and offs more >>
Audi Mexico produces completely without wastewater
30.08.2018
Use of purified wastewater with multistage reprocessing        100,000 cubic meters of water saved in production each year        Peter Kössler, Audi Board of Management Member for Production: “We are pursuing the vision of producing cars at all our sites completely CO₂ neutral and fre more >>
Daimler intensifies activities for a sustainable raw material supply chain and joins further initiatives
02.08.2018
    Daimler increases transparency in the raw material supply chain by joining the Responsible Cobalt Initiative, the Responsible Mineral Initiative, the Responsible Steel Initiative and the Aluminium Stewardship Initiative.    Renata Jungo Brüngger, Member of the Board of Management of Daimler AG for Integrity and Legal Affairs: "Joi more >>
Honda SmartCharge™ Beta Program Helps Electric Vehicle Drivers Save Money
31.07.2018
....and Reduce Environmental Footprint    App finds best time to charge electric vehicles, adjusting to electric grid conditions to reduce customer costs and CO2 emissi more >>
Audi Environmental Foundation turns plastic waste into recreation areas
04.07.2018
Together with project partner Recycled Island Foundation, the Audi Environmental Foundation is opening the first “floating park” in the Port of Rotterdam        Rüdiger Recknagel, Director of the Foundation: “We want more >>
Audi Environmental Foundation supports drone flights to measure and conserve mixed orchards
03.07.2018
  Sebastian Scheckel (left) and Prof. Alexander Siegmund of Heidelberg University of Education.    New geo-technology measures and assesses the condition of fruit orchards for the development of care recommendations     more >>
Honda Installs One of Southern California’s Largest Corporate Owned On-Site Solar Arrays
21.06.2018
... in Expansion of Corporate Renewable Energy Commitment •    Solar system installed at Honda campus in Torrance, Calif. expected to generate about 3,000 megawatt hours (MWh) annually to offset 30% of purchased electricity&b more >>
SEAT - 53,000 Panels to Harness The Power of The Sun
21.06.2018
•    One of the world’s largest photovoltaic plants in the automotive industry can be found in the SEAT Martorell factory •    Covering an area equivalent to 40 football fields, its 53,000 panels reduce CO2 emissions by nearly 4,000 tonnes annually•    The plant generates 17 million kWh more >>
IN-Campus GmbH: Audi and the city of Ingolstadt remediate refinery site for technology park
14.06.2018
Air sparging – using air to get rid of contaminants: Air sparging is being used on an area of roughly 100,000 square meters (1,076,391 sq ft) to remove highly volatile contaminants from the groundwater and soil. This is currently one of the largest air sparging projects more >>
SEAT has decreased its environmental impact by 35.5%
25.05.2018
Committed to the environment   •    Chimneys that reuse energy or pavement that reduced pollution are just two of the latest developments•    The company’s Martorell more >>
Green light for VW research project with HGVs using overhead power lines on public roads
25.05.2018
...in Germany    Research project for the electrification of HGVs supported by the German Federal Ministry for the Environment    The aim is to reduce CO2 emissions and relieve the burden on the environment    Joint project by Siemens and Volkswagen Group Research &n more >>
Daimler 2017 Sustainability Report: new focus
05.04.2018
    Detailed documentation of the economic, ecological and social effects of corporate activities    Current target programme: sustainability strategy 2030On the day of the Daimler Annual General M more >>
BMW Group publishes Sustainable Value Report 2017
20.03.2018
“For us, sustainability means future viability.”The BMW Group understands sustainability from the supplier through production to recycling. The Sustainable Value Report 2017 provides all the more >>
Audi Brussels receives certificate for CO2-neutral automobile production
12.03.2018
All manufacturing processes are completely CO2-neutral        Peter Kössler: Member of the Audi Board of Management responsible for Production: “We are working on making every factory in the Group even more sustainable.&rdq more >>
Audi Environmental Foundation supports young researchers
16.02.2018
- award for contributions to resource management    Sustainable Resource Management Award in recognition of theses on environmental protection and sustainability        Prizewinners research into urban de more >>
20 Toyota Mirai for Hamburg - Clever and climate-friendly
15.09.2017
The CleverShuttle ridesharing service launches its hydrogen-powered fleet    Acquisition of 35 Toyota fuel-cell vehicles    A milestone for clean mobility    The largest Mirai fleet in the more >>
Shell in collaboration with Honda and Toyota to Bring Seven New Hydrogen Refueling Stations in California
13.09.2017
California Energy Commission approves seven hydrogen stations and grants $16 million award.On August 9, the California Energy Commission (Energy Commission) awarded a grant more >>
Goodyear Using Soybean Oil-Based Rubber in Tyres
01.09.2017
The Goodyear Tyre & Rubber Company is harvesting some unique "seeds" of innovation as it introduces a new tyre technology with support from the United Soybean Board (USB).The first commercial use of a new soybean oil-based more >>
2001-2021 copyright automobilsport.com