Honda (HMC) - Get Report is going green in a big way, rolling out a pair of deals to offset the majority of power used by its U.S. car plants with electricity from a pair of massive solar and wind projects.
Honda said the first deal will kick in during fall 2020, when it will buy 530,000 MWh/year from Boiling Springs Wind Farm in Oklahoma. The second deal will go into effect a year later, when Honda will buy an additional 482,000 MWh/year from a giant Texas solar panel farm.
"These combined [virtual power-purchase agreements] will help Honda meet its CO2 reduction goals by adding clean renewable electricity and by decarbonizing the electricity grid," said Ryan Harty, manager, connected and environmental business development at American Honda.
Once the two power contracts are up and running, Honda will cover more than 60% of the power it uses in North America with deals for solar and wind power.
The power won't go directly to Honda's car plants, but instead will be transmitted into the power grid as a whole, helping offset the need for power generated by traditional plants using natural gas, oil, coal and other fossil fuels, the company said in a statement.
The agreements, which Honda contends are the largest for an automaker in the U.S., will in turn help offset emissions of 800,000 metric tons of carbon dioxide, or CO2e, equivalent to the amount given off each year by 100,000 homes across the U.S.
Honda Motor shares were little changed Monday at $26.67.