Ford Motor Company said Wednesday it has reached an agreement with DTE Energy for the utility to add 650 MW of new solar energy capacity in Michigan for the automaker by 2025.
It is the largest renewable energy purchase ever made in the U.S. from a utility, Ford said, citing Bloomberg NEF’s New Energy Outlook.
The deal comes amid a rising level of corporate renewable energy purchases in the U.S. and moves by companies to have 100% of their energy needs met by renewable sources.
“This unprecedented agreement is all about a greener and brighter future for Ford and for Michigan,” Jim Farley, president and CEO, Ford Motor Company, said in a statement. “Today is an example of what it looks like to lead… to turn talk into action.”
DTE will add the 650 MW of new solar power through its MIGreenPower program, leading to a nearly 70% increase in the total amount of installed solar in Michigan.
The deal will allow every Ford vehicle built in Michigan to “be assembled with the equivalent of 100% carbon-free electricity, 10 years earlier than Ford’s global goal,” the company said.
Ford was the first large industrial customer to enroll in the MIGreenPower program in 2019, DTE Energy Chairman and CEO Jerry Norcia noted in a joint press release.
“Efforts like this are the reason Michigan had the best job growth for energy-sector jobs in the country last year, which will help to advance our state’s decarbonization goals, create good-paying jobs and strengthen our economy,” Michigan Gov. Gretchen Whitmer, D, said in a statement.
The Clean Energy Buyers Association also praised the deal.
“Commitments such as this one continue to drive the voluntary market for carbon-free energy, validating CEBA’s bold aspiration of a 90% carbon-free U.S. electricity system by 2030 and a global community of energy customers driving clean energy,” the group said in a statement e-mailed to Utility Dive.
CEBA confirmed that Ford’s deal with DTE Energy “is the largest procurement for a utility incentivized by a corporate energy customer that is tracked through the CEBA Deal Tracker.”