SKF Signs VPPA with Enel to Power One-Third of its European Operations

A firm that delves into industrial sustainability, SKF has signed a Virtual Power Purchase Agreement (VPPA) with Enel. The long-term agreement, forged with global energy company Enel, will enable SKF to purchase guarantees of origin from Enel’s forthcoming solar project in Spain over 15 years. The purchased guarantees of origin will match the electricity consumption of about one-third of SKF’s European operations in 2022. The agreement will enable SKF to make progress in its pursuit of 100 per cent renewable electricity by 2030.

Enel’s solar plant is projected to generate over 260 GWh/year of renewable electricity, and its connection to the power grid is anticipated to be completed by August 2024. By embracing this VPPA, SKF says it actively contributes to the advancement of renewable energy development in Europe, making a substantial impact on greenhouse gas emission reduction.

Joakim Landholm, Chief Sustainability Officer and Senior Vice President at SKF emphasized the significance of this agreement, stating, “This represents a critical step forward in our strategic approach. It underscores our unwavering commitment to the cleantech industry and our support for the remarkable growth of renewable energy. Together, we can make a tangible difference in building a sustainable future.”

SKF’s climate targets have been endorsed by the Science Based Targets Initiative (SBTi). The company has pledged to reduce its absolute scope 1 and scope 2 GHG emissions by 95 per cent by 2030, relative to a 2019 baseline, and to reduce its scope 3 emissions by at least 31 per cent by the same year. Additionally, SKF is looking to achieve net-zero GHG emissions throughout its value chain by 2050.