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Despite headwinds from shifting federal policies, Ford Motor Company is doubling down on its commitment to clean energy. The automaker has signed a landmark power purchase agreement (PPA) with Michigan-based utility DTE Energy, signaling a strong push towards sustainability and a potential rebuke of previous administration’s stance on renewable energy.
Biggest Clean Power PPA Ever
This isn’t just another deal; DTE Energy claims it’s the largest clean power PPA ever initiated by a utility in the U.S. A PPA is an agreement to purchase power from a renewable energy project. This financial arrangement helps developers secure funding to build new solar and wind farms. It allows energy buyers, like Ford, to secure renewable energy credits from a new power plant before construction begins.
The agreement highlights the importance of PPAs in driving the U.S. energy transition. Established in 1978, PPAs were created to ease the financing of new power plants.
650 Megawatts of Solar Power
The new PPA commits Ford to purchasing 650 megawatts of solar energy. This purchase will come from a series of new solar arrays, with DTE having already broken ground on the first 100-megawatt array near Coldwater, Michigan.
According to DTE, Ford’s 650-megawatt purchase from its CleanVision MIGreenPower program marks the largest such commitment from any utility in the nation.
Amir Mirshahi, Ford’s director of Utilities and Energy Infrastructure, emphasized that this PPA allows Ford to attribute 100% of its electricity consumption in Michigan to clean energy. “It represents a significant step toward our goal of achieving carbon neutrality and will also help make our local Michigan communities more resilient to the impacts of climate change,” Mirshahi stated.
While the energy generated through the PPA feeds into the grid, allowing Ford to attribute the clean kilowatts to its overall energy profile, it also helps utilities displace fossil fuels in their energy mix.
Michigan Leads the Way
DTE President and COO Matt Paul emphasized the disconnect between federal policy and the desires of consumers and businesses. “Our customers – whether they are large manufacturers like Ford, or hometown businesses, or families – are telling us they want more renewable energy, and we will continue to develop and deliver it to them,” he said.
DTE plans to bring three new solar parks online in the first half of 2025, with another three beginning construction. These developments will contribute significantly to DTE’s goal of net-zero carbon emissions and align with Michigan’s clean energy targets.
These six parks will add a total of 800 megawatts to DTE’s renewable energy portfolio, which already consists of 20 wind parks and 34 solar parks located within Michigan.
The Future of Clean Power
Wind and solar, particularly solar, are becoming the fastest ways to add new generating capacity to the U.S. grid.
While federal support for wind and solar may be uncertain, other forms of renewable energy, such as geothermal, hydropower, and biomass, are still receiving government backing.
Despite policy shifts, Ford and DTE’s massive PPA demonstrates a powerful commitment to a cleaner energy future.