DTE Energy, Ford ink historic renewable energy purchase deal
In a mega-huge clean energy purchase agreement announced on Wednesday, DTE Energy will provide Ford Motor Co. with enough renewable energy to allow the car company to power all its operations in Michigan by 2025.
“The partnership is the first of its kind; the largest corporate renewable energy purchase made with a utility in the United States,” said DTE Energy Chairman, President and CEO Jerry Norcia during a live event this morning held at a Michigan Ford assembly plant attended by state government leaders, DTE staff, other stakeholders, and Ford employees.
Specifically, Ford is purchasing carbon-free electricity through DTE’s MIGreenPower program, a voluntary renewable energy program. “Ford was the first large industrial customer to enroll in our MIGreenPower program in 2019 and we thank Ford for its continued commitment to using MIGreenPower to help decarbonize its operations and meet its sustainability goals,” Norcia said.
Under the agreement, DTE Energy will add 650 megawatts of new solar energy in Michigan for Ford, resulting in a 70 percent increase in the amount of solar energy installed in Michigan, according to Norcia.
“And when the new Ford solar projects are built,” he said, “these will be some of the largest solar projects here in the state and will actually drive a billion dollars of solar investment in our home state of Michigan, so we’re pretty excited about that.”
As one of the nation’s first utilities to set high-level carbon-reduction goals, Norcia said DTE will continue to take bold steps to accelerate that progress. “In fact, by 2028, we will have reduced carbon emissions by 50 percent, with a goal of achieving net-zero by 2050,” he said during the event.
Ford has a similar goal, according to Jim Farley, Ford’s president and CEO, who also spoke during the press event.
“At Ford, we take the responsibility to address climate change very seriously,” Farley said. “The goal isn’t really anything unless there’s a plan. It’s just a wish. Today is an example of what it looks like to actually get off our butts and do something about it and take action.”
By 2025, Farley said that every Ford vehicle manufactured in Michigan will be assembled with the equivalent of 100 percent carbon-free electricity. The overall goal is to do this company-wide by 2050, he said, “but in Michigan, we’re moving that timeline 10 years ahead.”
Ford is on a mission to lead a digital and electric revolution, Farley said, adding that the company also plans to make electric vehicles (EVs) more affordable and accessible to “many, not a few.” Already, he said, the company from its Michigan plants leads the U.S. industry in supplying EV pickup trucks. “Take that, Elon Musk!” Farley said.
On the utility side, Norcia also pointed out that DTE Energy is the state’s largest producer and investor in renewable energy. “We know we have a role to play in the broader effort to decarbonize our state’s economy,” he said. “The partnership we’ve established with Ford Motor Co. is going to accelerate our journey.”
Since 2009, DTE’s investments in renewable energy have created more than 4,000 Michigan jobs, and Norcia estimates that the construction of the solar arrays will create 250 temporary jobs and 10 permanent jobs.
Local communities that host DTE’s renewable energy projects also benefit from the additional tax revenue generated by these projects that may be used for community support services, including roads, schools, libraries, and first responders, according to the utility.
DTE’s MIGreenPower program is among the largest voluntary renewable energy programs in the country, Norcia said, and to date, the utility has more than 600 businesses enrolled in the program along with more than 62,000 residential customers. “We’re adding 500 new residential customers a week,” he added.
Michigan Gov. Gretchen Whitmer in a statement congratulated DTE Energy and Ford for helping to increase the state’s solar energy production and to position Michigan as a leader in climate action.
“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,” Whitmer said. “As outlined in our state’s MI Healthy Climate Plan, we must take immediate, tangible steps to mitigate climate change and to reduce greenhouse gas emissions so we can achieve economy-wide carbon neutrality by 2050.
“Steps like this collaboration between Ford and DTE,” she said, “are helping to move our entire state forward, building on our automotive legacy while protecting clean air and water for future generations.”
