DTE Energy (DTE) Inks Deal With Ford for Renewable Energy

DTE Energy Company DTE recently clinched a clean energy agreement with Ford Motor Company (F), which entails the supply of renewable energy to the latter. Per the agreement, DTE is going to add 650 megawatts (MW) of new solar energy to Ford’s facilities in Michigan by 2025 through its MIGreenPower program, thus aiding F in decarbonizing its operations in the region and achieving its clean energy goal 10 years earlier than estimated.

The agreement further entails that henceforth Ford will utilize renewable energy to produce all of its vehicles in Michigan. The latest agreement marks the largest renewable energy purchase ever made in the United States. Further, the agreement augments Michigan’s installed solar capacity by nearly 70%.

Significance of DTE Energy’s MIGreenPower Program

DTE Energy’s MIGreenPower program is among the top three voluntary renewable energy programs in the United States. MIGreenPower offers simple and affordable renewable energy programs to eligible electric customers, thereby supporting the company’s wind and solar projects.

To date, the company has more than 600 businesses enrolled in the program along with more than 62,000 residential customers. Annually, MIGreenPower customers have enrolled 2.8 million megawatt hours of clean energy in the program, which has the environmental benefit equivalent to avoiding 2.2 million tons of carbon dioxide emissions.

Through the latest agreement with the Ford, the company takes a step forward in its effort to generate clean energy for the Michigan community.

DTE Clean Energy Goals

Over the next 15 years, DTE Electric plans to withdraw a portion of its coal-fired generation and boost the natural gas-fired generation and renewable mix. DTE Energy remains committed to reducing the carbon emission of its electric utility operations by 32% by 2023, 50% by 2030 and 80% by 2040 from the 2005 carbon emission levels. The company expanded this commitment by announcing a net-zero carbon emission goal for DTE Electric and DTE Gas by 2050.

These initiatives, along with the latest agreement with Ford, are likely to expand DTE Energy’s footprint in the renewable energy space and help duly achieve its aforementioned clean energy target.

Other Utilities’ Goals

Other utilities that have pledged to generate energy through renewable sources to achieve a carbon-free environment are as follows:

Duke Energy DUK aims to reach its target of net-zero carbon emissions from electric generation by 2050. Renewables are projected to be Duke Energy’s largest source of energy, making up for more than 40% of its generation capacity.

The long-term earnings growth rate of Duke Energy is pegged at 6.1%. The four-quarter average earnings surprise for DUK stands at 1.1%.

American Electric Power AEP aims at reducing carbon dioxide emissions by 80%. AEP plans include growing its renewable generation portfolio to approximately 50% of the total capacity by 2030.

American Electric boasts a long-term earnings growth rate of 6.2%. The four-quarter average earnings surprise for AEP is 1.9%.

Ameren Corporation AEEalso plans to retire more than 75% of its current coal-fired energy-generating capacity by 2040 while closing all by 2042. AEE targets to expand its renewables portfolio by adding 3,100 MW of renewable generation by the end of 2030 and a total of 5,400 MW of renewable generation by 2040.

The long-term earnings growth rate of Ameren is pegged at 7.2%. The four-quarter average negative earnings surprise for AEE is 0.6%.

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