French oil and gas firm TotalEnergies has entered into a 15-year renewable power purchase agreement (PPA) with Saint-Gobain, a building materials manufacturer. This agreement marks their second long-term solar power supply deal aimed at reducing carbon emissions from Saint-Gobain’s 125 industrial facilities in North America.
The 100-MW PPA will see TotalEnergies supply clean energy from its Danish Fields Solar farm in Texas, offsetting 90,000 metric tons of Scope 2 CO2 emissions for Saint-Gobain. The contract incorporates an upside-sharing mechanism, enabling both companies to share potential gains resulting from increased market prices over the contract’s duration.
“With this agreement, Saint-Gobain North America will further reduce its CO2 emissions, demonstrating how fast the manufacturing industry can transform when long-term solutions are at hand,” Mark Rayfield, CEO of Saint-Gobain North America, said. “This renewable energy project is a new milestone on the way to meeting Saint-Gobain’s commitment to reduce scope 1 and 2 CO2 emissions by 33% by 2030 - compared to 2017 - and to reach carbon neutrality by 2050.”
TotalEnergies’ Danish Fields Solar farm, boasting a capacity of 720 MW, is slated to begin operations in 2024 and become the company’s largest utility-scale operated solar facility in the U.S.
“We are truly excited to reinforce our collaboration with Saint-Gobain with this new clean energy commitment and therefore contribute to their carbon neutrality roadmap,” said Vincent Stoquart, Senior Vice President of Renewables at TotalEnergies. “TotalEnergies’ growing solar power generation portfolio in the U.S. provides concrete solutions enabling our industrial customers to decarbonize their electricity consumption.”
TotalEnergies aims to generate up to 10 GW of renewable power by 2025 and surpass 25 GW by 2030 in the U.S.
