RE100 member top-finances new wind farm in Sweden
Today the Tågeröd wind farm in Sweden started to generate electricity, supplying clean power to the local grid. H&M group’s decision has made Tågeröd possible – using a new and innovative additionality solution. The Swedish design group has contributed to the construction of four new wind turbines, providing top-financing through the purchase of ECOHZ GO2. GO2 is a renewable energy product that combines the purchase of documented renewable power with the financing and building of new renewable power capacity.
ECOHZ GO2 is based on renewable electricity purchases documented with Guarantees of Origin (GO). GO2 is a premium product that enables a significant share of the GO revenue to top-finance a named project, in this case Tågeröd. The result is that 18 GWh clean, renewable power is generated annually, and in the excess of 240 GWh new power by the end of 2030.
The real innovation is linked to the GO2 financing model which enables, within two to four years, the top-finance loan to be recirculated and finance yet another power plant of similar size. By 2030, H&M group’s single decision will have resulted in another eight wind turbines to be top-financed and built. In total, these power plants will generate 439 GWh by 2030.
“We use electricity from renewable energy sources to reduce our carbon footprint. We have been looking for ways that our renewable electricity procurement could more clearly contribute to the building of more renewable capacity, while still being easy to implement. GO² ticks those boxes, and we’re assessing its role in our future procurement strategy”, says Anna Gedda, Head of Sustainability, H&M group. “We are working to achieve 100% renewable electricity for all our operations, and we are currently at 96%. This is part of our larger commitment to maximize the use of renewable and sustainable energy throughout our supply chain.”
“Adding new renewable energy sources was previously only possible through more complex investments in on-site power projects. Tågeröd is an example of how companies can consume and contribute to renewable energy production without committing to major infrastructure investments. The world will need more renewable energy in the future and business leadership, like H&M has shown, is essential to make this happen,” says Tom Lindberg, Managing Director at ECOHZ.
The H&M group is one of 119 influential companies that have joined the collaborative, global RE100 initiative and committed to using 100% renewable power in all their operations – across all territories. ECOHZ GO² is a solution to help RE100 members and other forward-looking companies achieve their goals and “go one step further”.
“It is great to see companies innovate and experiment with new ways to meet their public commitments to renewable electricity where Power Purchase Agreements or other long-term commitments may not currently be a viable option. By working with ECOHZ, H&M has found a flexible solution that helps to grow the local market for renewables, while enabling the company to show leadership as it edges ever closer to its RE100 goal,” says Constant Alarcon, RE100 Campaign Manager at The Climate Group.
ECOHZ offers global renewable energy solutions to businesses, organisations and electricity providers – providing renewable electricity, from a wide range of sources, regions and qualities. Renewable electricity is documented by Guarantees of Origin in Europe, RECs in North America and International RECs (I-RECs) in a growing number of countries in Asia, Latin America and Africa. ECOHZ also provides an innovative additionality solution – GO² – combining renewable energy purchases with the financing and building of new renewable power generation. Companies choosing documented renewable energy can reduce their carbon footprint and improve their sustainability ratings. ECOHZ is among the leading independent suppliers in Europe, and has offices in Norway and Switzerland. ECOHZ endeavours to play an active role in the current energy transition through its vision of “changing energy behaviour”. www.ecohz.com
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Ingrid Helsingen Warner