Under the long-term agreement, the solar park, located in Hultsfred, Sweden, will provide H&M group with local renewable energy and guarantees of origin, putting the company one step closer to its goal to only source renewable electricity. Jointly developed and owned by Neoen, the majority shareholder and Alight, the project will have a total capacity of at least 90 MWp. It will be built using low-carbon photovoltaic panels to be installed around the runway of Hultsfred airport, in the south-east of Sweden. Construction is planned for the second half of 2023, with commissioning to follow in 2025, said H&M in a media statement.H&M group has set the ambitious goal to reduce the company’s absolute scope 1 and 2 emissions and its scope 3 emissions by 56% both by 2030 and also to increase the annual sourcing of renewable electricity to 100% by 2030. As part of the company’s green investments, PPAs play a very important role in the company’s climate work to achieve its targets. By contracting in this PPA, H&M group will make the project viable and add new green power capacity to the Swedish grid.

“We are very excited to see Hultsfred’s solar park becoming a reality in the near future. Renewable energy plays a crucial role in our climate roadmap to reduce emissions and achieve net-zero by 2040. Business and countries must show leadership to limit global warming to 1.5°C according to what climate science urges us to do. Power purchase agreements like this one with Neoen and Alight bring us one step closer to meet our ambitious climate goals and increase the availability of clean energy in the country,” said Ulrika Leverenz, head of green investment H&M group.“We are very proud of our partnership with Neoen and H&M group for signing a power purchase agreement that enables us to rapidly build new clean electricity in Southern Sweden, where the demand for electricity is the highest. When a large corporation and power user decides to go big on renewable energy, it has a real impact on society as a whole, while at the same time creating more energy security,” said Harald Överholm, CEO of Alight.“I would like to thank the H&M group for the trust they have placed in us and congratulate our local team and our partner Alight on the signing of this agreement. This is our first power purchase agreement in Sweden and our ninth in the Nordics. Our longstanding contracts in the region now cover almost half a gigawatt of renewable energy, showing once again our ability to meet the needs of companies like H&M group and provide them with a secure supply of competitive, local renewable energy,” said Xavier Barbaro, CEO and chairman of Neoen.