Toyota Motor North America Inc said today it has signed a virtual power purchase agreement (PPA) with US solar developer Savion LLC to offtake 100 MW of energy from the latter’s Martin County Solar Project in Kentucky.
Savion, a Shell Plc (LON:SHEL) portfolio company, is developing the project at the former Martiki coal mine in Martin County, on the border of Kentucky and West Virginia. Construction of the solar array is expected to start in the middle of the year, with completion seen in 2024.
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Kentucky hosts Toyota's largest vehicle factory in the world.
David Absher, senior manager of environmental sustainability at Toyota Motor North America, said that the project shows how renewable PPAs can bring opportunities to former coal communities and will help Toyota reach its goal of having renewable electricity account for at least 45% of its electricity procurement by 2025.
The Japanese carmaker aims to make all its operations in North America carbon neutral by 2035.
Savion is assisted in developing the project by local development partner Edelen Renewables.
According to the project’s website, it has a proposed capacity is 100 MW, with expansion potential for up to 200 MW.