Textile Major H&M Signs PPA With Neoen & Alight For 90 MWp Solar Park In Sweden

French Renewable energy player Neoen and solar power specialist Alight have announced the signing of a PPA for 90 MWp of green energy in Sweden with the Swedish fashion retailer H&M Group. Under the long-term PPA, the solar park, located in Hultsfred, Sweden, will provide H&M Group with local renewable energy and guarantees of origin, putting the company one step closer to its goal to only source renewable electricity.

The official statement held that this is the largest solar PPA contracted in Sweden to date.

Jointly developed and owned by Neoen and Alight, the project will have a total capacity of at least 90 MWp. It will be built using low-carbon photovoltaic panels to be installed around the runway of Hultsfred airport, in the south-east of Sweden. Construction is planned for the second half of 2023, with commissioning to follow in 2025.

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H&M Group says that it has an ambitious goal to reduce the company’s absolute scope 1 and 2 emissions and its scope 3 emissions by 56% both by 2030 and from a 2019 baseline and to increase the annual sourcing of renewable electricity to 100% by 2030. By contracting in this PPA, H&M Group says it will make the project viable and add new green power capacity to the Swedish grid.

Sustainability has been one of the biggest challenges for the textile sector as a whole, with the whole value chain, including large parts in developing countries causing severe stress to the environment beyond just the energy use.

Ulrika Leverenz, Head of Green Investment, H&M Group, said, “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.”

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Harald Överholm, CEO, Alight, stated, “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.”

Xavier Barbaro, CEO and Chairman, Neoen, concluded, “This is our first power purchase agreement in Sweden and our ninth in the Nordics. Our longstanding contracts in the region now cover almost half a gigawatt of renewable energy, showing once again our ability to meet the needs of companies like H&M Group and provide them with a secure supply of competitive, local renewable energy.”