Renault signs trio of green deals in France, incl. 350-MW solar PPA

Renault (EPA:RNO) on Thursday announced three long-term decarbonisation deals for its operations in France, including the country’s largest green electricity supply contract, signed with French renewable power plants operator Voltalia SA (EPA:VLTSA).

The deal with Voltalia is a 15-year power purchase agreement (PPA) for 350 MW of solar capacity, representing annual generation of about 500 GWh. Voltalia will start installing 100 MW of solar in 2025 and then steadily increase the capacity dedicated to Renault to 350 MW by 2027. Thanks to this contract, Renault will cover up to 50% of the electricity usage of its production activities in France in 2027, including the needs of its Cleon plant and its ElectriCity electric vehicle production hub.

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Renault targets net zero carbon emissions for its ElectriCity hub in France by 2025, in Europe by 2030 and globally by 2050.

The carmaker is also working to secure carbon-free heat for its factories. It is partnering with French energy company Engie SA (EPA:ENGI) to develop the first deep geothermal project on a European industrial site, at its Douai factory in northern France. The project is part of a heat purchase agreement (HPA) that will replace 70% of the site’s gas needs.

ENGIE will start drilling work at the Douai plant at the end of 2023 to draw hot water to supply the plant's industrial and heating process needs from 2025. The project will deliver nearly 40 MW of geothermal energy which could also be used to generate electricity in summer periods when less heat is needed.

The third deal is with Dalkia, a renewable energy subsidiary of EDF (EPA:EDF), for the supply of carbon-free heat to Renault’s Maubeuge plant through a 15-MW biomass boiler. Dalkia will install at the site a biomass boiler and waste heat recovery systems that will cover 65% of the plant’s gas needs by 2025.

In 2021, Renault signed a decarbonisation agreement with Spanish utility Iberdrola SA (BME:IBE) for its Iberia operations.