HP expands renewable energy use
High-tech giant aims to cut costs through energy use reduction
By Purchasing Staff -- Purchasing, 11/27/2007 1:17:00 PM
Hewlett-Packard (HP) has entered into agreements with two renewable energy providers as part of the company’s strategy to reduce its global carbon footprint.
Under a power purchase agreement with SunPower Corp. in the U.S., HP will install its first-ever, large-scale solar power installation at its San Diego facility. It has also signed a contract with Airtricity to ensure that 90% of HP’s energy use in Ireland is renewable, exceeding the company’s 2007 target for carbon emission reductions.
“Switching to renewable energy sources such as solar and wind power makes both environmental and business sense,” says Pat Tiernan, vice president, social and environmental responsibility at HP. “These advances are just part of HP’s comprehensive energy-efficiency program, which we believe is the most aggressive in the technology industry.”
HP’s contract with Airtricity, based in Chicago, is for the supply of renewable wind energy to a number of HP facilities in Ireland for fiscal year 2008. The electricity supplied by Airtricity is generated by both onshore and offshore wind farms.
Through the contract, HP, based in Palo Alto, Calif., will purchase more than 80 gigawatt-hours of renewable energy. It is estimated that the agreement will save HP approximately $40,000 over the year-long contract. There are also significant environmental benefits. HP will save the release of more than 40,000 tons of carbon dioxide, which is equivalent to taking 9,600 cars off the road for one year.
HP’s agreement with SunPower, based in San Jose, Calif., covers installation of a 1-megawatt solar electric power system and required maintenance of the system for the next 15 years. HP will buy back solar power at a reduced, locked-in rate under the SunPower Access program. The HP solar electric system will be financed and owned by a third-party financier, which allows HP to take advantage of the environmental and financial benefits of solar with no upfront capital costs.
Initial estimates indicate that the project will save HP approximately $750,000 in energy costs during the next 15 years. HP also will earn renewable energy credits as the installation will reduce carbon dioxide emissions by more than 1 million pounds per year or nearly 16 million pounds during the next 15 years.
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