Corporate Buyers

GM to run Ohio, Indiana factories with 100 percent wind power

GM to run Ohio, Indiana factories with 100 percent wind power
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Last week I predicted it wouldn’t be long before we had more news on Fortune 500 wind power purchases. Well, a whole seven days passed before there were new deals to report.

Wind powers the open road for GM

GM just announced wind power purchase agreements with projects in Ohio and Illinois. The automaker is buying enough wind-generated electricity to power the Ohio and Indiana factories that build the Chevrolet Cruze and Silverado, and the GMC Sierra.

“Technology is driving solutions for mobility and safety in our vehicles, as well as the new energy solutions that build them,” said Gerald Johnson, GMNA vice president of Manufacturing and Labor. “This is the way we do business: offering vehicles that serve our customers’ lifestyle needs while providing sustainable solutions that improve our communities.”

GM already has plans to soon power 100 percent of its Arlington, Texas, plant using wind, where over 100,000 SUV’s are made every year. Wind’s low cost, down 66 percent since 2009, has made it an attractive option for GM as it works toward meeting its 100 percent renewable goal.

Other buyers jump on the bandwagon

GM isn’t alone in the headlines this week, however. Kimberly-Clark, maker of products like Kleenex and Huggies, also announced a new wind deal in recent days. The company will soon source about 33 percent of its electricity needs from wind farms in Oklahoma and Texas.

“It’s a powerful demonstration of sustainability initiatives having both great environmental and business benefits,” said Lisa Morden, Kimberly-Clark’s global head of sustainability.

Why wind power makes sense for the Fortune 500

Two recent reports looked at why companies like GM and Kimberly-Clark are pouncing on wind power.

David Gardiner and Associates (DGA) examined the recent trend of manufacturers committing to buying renewables in a new report entitled “The Growing Demand for Renewable Energy among Major U.S. and Global Manufacturers.”

DGA surveyed 160 large U.S. manufacturers, finding that 40 currently have a renewable energy goal in place, and 18 of those 40 have 100 percent renewable targets.

The following 10 states host the most factories for those 18 companies: California, Texas, Ohio, Missouri, Illinois, Michigan, Oregon, Pennsylvania, Tennessee, and North Carolina.

The report adds that manufacturers invest in renewable energy to lower energy costs, secure stable, low-risk energy prices, and demonstrate corporate leadership. GM CEO Mary Barra confirms that “pursuit of renewable energy benefits our customers and communities through cleaner air while strengthening our business through lower and more stable energy costs.”

Meanwhile, Greenbiz Group and Apex Clean Energy surveyed 153 large corporate buyers to see what motivates companies to invest in wind.

Eighty-four percent of respondents plan to actively pursue or consider directly buying renewables over the next five to 10 years, and 43 percent plan to be more aggressive in the next 24 months. Sixty-five percent report price as a leading factor in determining purchases.

So yet again, expect to hear more on this trend before long.

Corporate Buyers

Greg is AWEA's Deputy Director of External Communications. He is the head editor and writer for Into the Wind, and oversees AWEA's online content and opinion writing. Greg holds a Master's degree in Global Environmental Policy from American University's School of International Service. He also holds a Bachelor's degree in International Relations and Journalism from Lehigh University.

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