SKF signs Virtual Power Purchase Agreement (VPPA) to support renewable energy in Europe
Gothenburg, 22 June 2023: SKF has signed a Virtual Power Purchase Agreement (VPPA) in the next step towards its target of 100% renewable electricity by 2030. Under the long-term agreement with the global energy company Enel, SKF will purchase guarantees of origin for a period of 15 years, equivalent to the electricity used by one third of its European operation in 2022, from Enel's upcoming solar project in Spain.
The solar plant is expected to add more than 260 GWh/year of renewable electricity and be connected to the power grid by August 2024. By signing the VPPA, SKF is able to support the development of additional renewable energy in Europe and contribute to the reduction of greenhouse gas emissions.
Joakim Landholm, Chief Sustainability Officer and Senior Vice President, says: "This agreement is a critical step forward in our strategy. It also demonstrates our commitment to the cleantech industry and support for the growth of the renewable energy industry. This shows that, by working together with others, we can make a real impact in achieving a sustainable future."
The VPPA is part of SKF's broader sustainability agenda, which includes initiatives to reduce energy consumption, increase use of renewable energy, and minimize environmental impact. The agreement is also another step forward in SKF's membership of RE100, as part of a membership commitment to shifting to 100% renewable electricity by 2030.
SKF's climate targets are approved by the Science Based Targets initiative (SBTi). In its targets, SKF has committed to reducing its absolute scope 1 and 2 GHG emissions by 95% by 2030 from a 2019 base year and to reduce its scope 3 emissions by at least 31% by 2030. SKF has also committed to reach net-zero GHG emissions across the value chain by 2050. More information about SKF's climate goals can be found on: https://www.skf.com/group/organisation/sustainability