General Motors continues to lead the US automotive industry in uptake of renewables and will soon power its extensive vehicle and parts manufacturing operations in the states of Ohio and Indiana with wind energy, said Rob Threlkeld, global manager for renewable energy.

A unit of Michigan-based utility holding company CMS Energy recently began operation of its Northwest Ohio project under a 15-year offtake arrangement with GM.

The so-called virtual power purchase agreement (PPA) is a financial hedge provided by GM that lenders accepted as an off-take structure that is financeable.

GM obtains a financial benefit by paying an agreed fixed price per MWh for electric power and obtains environmental attributes – in this case, renewable energy credits.

The automaker confirmed that the PPA helps bring it closer to its goal of powering regional plants with wind energy, citing the 'added-generation test' – revenue flow from the PPA – as enabling CMS Enterprises to build and operate the wind farm.

Northwest Ohio Wind is expected to generate about 320,000MWh of renewable energy per year. It will help offset carbon emissions from seven Midwestern GM facilities, equivalent to taking more than 50,000 cars off the road each year.

By the end of this year, GM asserts that renewable energy will provide 20% of its global electricity use.

GM made its first wind purchase in 2014 for several of its Mexico operations, followed by deals supporting Texas wind farms for 30MW and 50MW of energy.

The company uses solar power at 26 facilities and generates electricity from landfill gas at two assembly plants.

Wind

GM close to 100% wind power for Indiana and Ohio operations