Earlier this year, Ford split itself into two distinct divisions – Blue and Model E. It’s the company’s plan for the future as it looks to emphasize electric vehicles and help reduce carbon emissions. Part of that plan includes the Blue Oval powering its operations with green energy, and Ford took a big step toward making that happen.
The automaker has announced it will purchase 650 megawatts of new solar energy in Michigan from DTE Energy. According to data from the Solar Energy Industries Association, this will increase the state’s total installed solar energy amount by 70 percent.
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This purchase, which is happening with DTE’s MIGreenPower program, will allow Ford to manufacture every vehicle in the state with renewable energy by 2025. Ford aims to power all its operations around the world with renewables by 2035.
Ford enrolled with DTE’s program in 2019, becoming its first large industrial customer. DTE has more than 600 businesses, and 62,000 residential customers enrolled in the program today.
“Today is an example of what it looks like to lead… to turn talk into action,” said Ford CEO Jim Farley. “This unprecedented agreement is all about a greener and brighter future for Ford and for Michigan.”
Ford’s Michigan investment will translate into new jobs. DTE estimates that constructing the solar arrays will create 250 temporary jobs and 10 permanent ones. The purchase will also bring increased tax revenue to local communities that host DTE’s renewable energy projects, which could help fund schools, roads, and other community needs.
The Blue Oval will need all the energy it can get as it plans to produce 600,000 EVs by the end of 2023, with Ford hoping to increase that number to two million EVs by the end of 2026. However, not all of those will roll off assembly lines located in Michigan. Ford also upped its investment into electric vehicles earlier this summer and began securing the battery capacity required to reach its production goals. Ford is also building manufacturing campuses in Tennessee and Kentucky.