H&M group signs 90 MW solar power purchase agreement

Swedish fashion retailer H&M Group, have signed power purchase agreements (PPAs) for more than 90 MWp of green energy in Sweden with Neoen, one of the world’s leading producers of exclusively renewable energy, and Alight, a leading solar developer and independent power producer in Europe.

The Neoen and Alight-developed and-owned Hultsfred solar project is expected to start construction in the second half of 2023. According to the long-term agreement, the solar park will supply H&M Group with renewable energy and significantly lower H&M Group’s carbon footprint. The current biggest solar PPA in Sweden is this one. The Hultsfred solar park will have a minimum 90 MWp capacity and provide enough energy to power over 16,000 houses for a whole year.

Low-carbon photovoltaic panels will be used to construct the solar farm, which will be put completely around the runway of the Hultsfred airport in southeast Sweden.

The ambitious target established by H&M Group is to source 100 percent renewable electricity annually by 2030 while reducing the company’s absolute scope 1 and 2 and scope 3 emissions by 56 percent by 2030 and from a baseline of 2019.

PPAs are a crucial component of the company’s green initiatives and aid it greatly in achieving its climate goals. H&M Group will contribute new green electricity capacity to the Swedish grid and make the project financially feasible by entering into this PPA.

Ulrika Leverenz, Head of Green Investment for the H&M Group, said that she and her team were extremely excited to see Hultsfred’s solar park become a reality in the near future. Their climate agenda, which aims to reduce emissions and achieve net-zero status by 2040, heavily relies on renewable energy. Climate science compels us to act to limit global warming to 1.5°C, and businesses and nations must take the lead. Power purchase agreements like this one with Neoen and Alight boost the country’s access to renewable energy and help us get closer to achieving their ambitious climate goals.

Harald Överholm, CEO of Alight, said that they are really happy of our relationship with Neoen and H&M Group for concluding a power purchase agreement that enables them to quickly develop new sustainable electricity in Southern Sweden, where there is a significant demand for electricity. A huge company’s decision to invest heavily in renewable energy has a significant impact on society as a whole while also increasing energy security.

Xavier Barbaro, CEO and Chairman of Neoen, added that he would like to thank H&M Group for the trust they have placed in us and congratulate their local team and our partner Alight on the signing of this deal. This is their sixth Nordic power purchase agreement and their first one in Sweden. Their ability to satisfy the demands of businesses like H&M Group and give them a secure supply of affordable, local renewable energy is demonstrated once again by the fact that their long-standing contracts in the area now cover approximately half a gigawatt of renewable energy.