GKN Automotive partners with Recurrent Energy for VPPA deal.

By Oliver Townsend Jul 10, 2024
GKN Automotive signs VPPA with Recurrent Energy.jpegOrginal image from: https://www.electrichybridvehicletechnology.com/news/gkn-automotive-signs-vppa-with-recurrent-energy.html

GKN Automotive, a global leader in drive systems, has recently made a significant move towards sustainable energy practices by signing a 10-year Virtual Power Purchase Agreement (VPPA) with Recurrent Energy, a subsidiary of Canadian Solar. This agreement marks a major step in GKN Automotive’s commitment to decarbonize its electricity usage and aligns with the company’s goal to increase its use of renewable electricity globally. This article will explore the details of this agreement and its implications for the automotive industry.

GKN Automotive’s Commitment to Renewable Energy

The VPPA signed by GKN Automotive with Recurrent Energy will cover a significant portion of the company’s electricity load in Europe and globally. By engaging in this agreement, GKN Automotive aims to use 50% renewable electricity globally by 2025 and increase this to 75% by 2030. The establishment of The Rey I project, a new large-scale solar farm in Spain, is a crucial part of this agreement, supplying approximately 200,000 MWh of renewable electricity to the European grid annually.

Impact on Greenhouse Gas Emissions

Dr. Clare Wyatt, Chief People, Communications & Sustainability Officer at GKN Automotive, emphasized the company’s commitment to achieving its 2045 net zero ambition through initiatives like the VPPA with Recurrent Energy. By receiving Energy Attribute Certificates (EACs) equivalent to 65% of its European 2023 electricity usage, GKN Automotive is actively working towards reducing its direct Greenhouse Gas emissions by 45% by 2030 and achieving net zero across its entire value chain by 2045.

Partnership with Schneider Electric

The VPPA agreement was facilitated by Schneider Electric, a global leader in corporate renewable energy procurement. John Powers, Vice President of Global Renewables at Schneider Electric, expressed excitement about supporting GKN Automotive in this renewable energy endeavor. This collaboration underscores the potential of VPPAs in driving sustainability efforts and accelerating the transition to renewable energy on a global scale.

Industry Response and Future Plans

Ismael Guerrero, CEO of Recurrent Energy, expressed satisfaction with the partnership, highlighting the shared commitment to combatting climate change. GKN Automotive plans to pursue further VPPAs across Europe and South America to continue decarbonizing its global operations. This strategic approach aligns with the company’s goal of contributing to a cleaner, more sustainable world through renewable energy initiatives.


The VPPA agreement between GKN Automotive and Recurrent Energy represents a significant step towards decarbonization and sustainability in the automotive industry. By leveraging renewable energy sources and committing to ambitious goals for the future, GKN Automotive is setting a positive example for other companies in the sector. This collaboration not only benefits the involved parties but also contributes to broader efforts to address climate change and promote environmental responsibility within the automotive industry.

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