VPPA for Second Division solar farm

H&M Group signs virtual power purchase agreement with Lightsource bp – enabling the construction of new, renewable energy infrastructure in Texas 

For several years, H&M Group has been exploring ways to contribute to adding more renewable electricity into the world’s power grids. For example, in the form of Power Purchase Agreements (PPAs) with solar and wind farms.  H&M Group and global solar leader Lightsource bp announced their partnership in 2021, committing to a multi-year power contract for projects that are contributing to the growth of the renewable sector. Following this commitment, H&M Group signed a virtual power purchase agreement (VPPA) with Lightsource bp for its 125MW Second Division solar project in Texas, U.S. The project will provide local renewable energy, playing an important role in reducing H&M Group’s carbon footprint.

The solar farm is currently under construction in Brazoria County. The project will deliver affordable electricity into the local grid, supporting local energy independence and security, while reducing carbon dioxide emissions by an estimated 155,000 metric tons each year.

“Considering fashion’s environmental impact, we see great value in moving away from just using certificates to contributing to more clean energy. By partnering with solar and wind farm developers, we can help build renewable electricity capacity in power grids around the world”, says Ulrika Leverenz, Head of Green Investment, H&M Group.

Acknowledging that keeping global warming within 1.5°C requires a vast scale-up of renewable electricity capacity, H&M Group is actively supporting the global need to transition to fully renewable systems. At the same time, the group continues its work towards sourcing 100% renewable electricity in its own operations no later than 2030 and achieving net-zero emissions by 2040. This also includes the group’s target for ≥50% of that renewable electricity to come from power purchase agreements (PPAs) with new renewable electricity generation. These will increase the renewable electricity generation capacity on electrical grids in markets where H&M Group operates.

“Corporate energy buyers with sustainability goals such as H&M are not only making a meaningful positive impact on our environment,” said Helen Brauner, Interim Chief Operating Officer, Lightsource bp USA. “They are enabling the construction of new, home-grown lower carbon energy infrastructure that supports energy diversification, grid reliability, and local economies.”

The project in Texas aims to be operational by the end of 2024. From then on, the Second Division solar farm will deliver enough electricity to power an estimated 20,500 U.S. homes each year, while lowering carbon emissions — the equivalent of taking 33,300 fuel burning cars off the road. In line with H&M Group’s mission to approach climate and nature holistically, Lightsource bp also considers the project’s impact on biodiversity. The constructed solar farm infrastructure takes up less than 10% of the land, enabling the planting of site-specific grasses and other vegetation under and around the solar panels, with a goal of increasing biodiversity in the first 5 years of operation. Additionally, the project will integrate agriculture in the form of sheep grazing.