The Tågeröd wind farm in Sweden has begun operations and is supplying clean power to the local grid. H&M group has made Tågeröd possible by using a new and innovative “additionality solution.” The Swedish design group has contributed to the construction of four new wind turbines, providing top financing through the purchase of ECOHZ GO2. GO2 is a renewable energy product that combines the purchase of documented renewable power with the financing and building of new renewable power capacity.
The innovation behind the Tågeröd wind farm stems from the ECOHZ GO2 financing model which enables, the top-finance loan to be recirculated and financed to yet another power plant of similar size within two to four years. By 2030, H&M group’s decision will have resulted in another eight wind turbines to be top-financed and built.
ECOHZ GO2 is based on renewable electricity purchases documented with Guarantees of Origin (GO). GO2 is a premium product that enables a significant share of the GO revenue to top-finance a named project, in this case, Tågeröd. The result is that 18-GWh of clean, renewable power is generated annually, and an excess of 240-GWh of new power by the end of 2030.
“Adding new renewable energy sources was previously only possible through more complex investments in on-site power projects,” says Tom Lindberg, Managing Director at ECOHZ. “Tågeröd is an example of how companies can consume and contribute to renewable energy production without committing to major infrastructure investments. The world will need more renewable energy in the future and business leadership like H&M has shown, is essential to make this happen,”
The real innovation is linked to the GO2 financing model which enables, the top-finance loan to be recirculated and financed to yet another power plant of similar size within two to four years. By 2030, H&M group’s single decision will have resulted in another eight wind turbines to be top-financed and built. In total, these power plants will generate 439-GWh by 2030.
“It is great to see companies innovate and experiment with new ways to meet their public commitments to renewable electricity where Power Purchase Agreements or other long-term commitments may not currently be a viable option,” says Constant Alarcon, RE100 Campaign Manager at The Climate Group. “By working with ECOHZ, H&M has found a flexible solution that helps to grow the local market for renewables, while enabling the company to show leadership as it edges ever closer to its RE100 goal,”
The H&M group is one of 119 influential companies that have joined the collaborative, global RE100 initiative and committed to using 100% renewable power in all their operations – across all territories. ECOHZ GO² is a solution to help RE100 members and other forward-looking companies achieve their goals and “go one step further.”
Filed Under: Financing, News, Projects
