Ford, DTE strike solar deal that will help automaker’s plants go carbon-free in Michigan

Ford Motor Company and DTE Energy announced Wednesday what they called the largest renewable energy purchase from a utility in U.S. history — enough to help power all Ford operations in Michigan with wind, sun, water and nuclear energy by 2025.

Because of the agreement, DTE can add 650 megawatts of new solar energy in Michigan for Ford, increasing the total solar supply by nearly 70%, Ford and DTE said in a joint news release.

Ford Motor Co. announces a historic sustainable energy deal with DTE on Wednesday, August 10, 2022.

Every Ford vehicle manufactured in Michigan will be assembled with the equivalent of 100% carbon-free electricity by 2025, 10 years ahead of Ford’s global goal, the company said in the news release. Ford and DTE also planned to announce the agreement  at an event Wednesday at the Ford Michigan Assembly Plant in Wayne with company, utility and government officials.

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This purchase of carbon-free electricity through DTE’s MIGreenPower program will avoid as much as 600,000 tons of carbon dioxide emissions, DTE said in the release.

Ford Michigan Assembly Plant workers look on as President and CEO Jim Farley, speaks during a press conference at the Wayne plant on Aug. 10, 2022, to announce a historical deal between DTE and Ford where Ford will be powering all its Michigan factories with sustainable energy.

The investment is also expected to create jobs and tax revenue in Michigan.

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“We want to congratulate Ford Motor Co. for its environmental leadership and commitment to clean energy,” Jerry Norcia, CEO, DTE Energy, said in a prepared statement. “Ford was the first large industrial customer to enroll in our MIGreenPower program in 2019 and we want to thank Ford for its continued commitment.” 

Chairman, President and CEO of DTE Energy Jerry Norica speaks during a press conference at the Wayne Ford Michigan Assembly Plant Modification Center on Aug. 10, 2022, to announce a historical deal between Ford and DTE where Ford will be powering all its Michigan factories with sustainable energy.

In a prepared statement, Gov. Gretchen Whitmer praised DTE and Ford for working to increase the state’s solar energy production, positioning Michigan as a leader in climate action.

“Steps like this collaboration between Ford and DTE are helping to move our entire state forward, building on our automotive legacy while protecting clean air and water for future generations,” she said in the statement.  

F-150, Bronco plants go green

Pivoting away from traditional carbon-based electricity made with natural gas and coal is part of a long-term mission for Ford, as other companies globally have also shifted to lessen their impact on the environment.

Ford already has purchase agreements for wind energy, Bob Holycross, Ford vice president of sustainability, environment and safety engineering,  said. The solar purchase gets Ford to its finish line in Michigan.

A lineup of Ford vehicles including the Mustang Mach 1, Bronco Raptor and F-150 set the background for a press conference at the Wayne Ford Michigan Assembly Plant Modification Center on Aug. 10, 2022, to announce a historical deal between Ford and DTE where Ford will be powering all its Michigan factories with sustainable energy.

This applies to everything — the Dearborn Truck Plant, Michigan Assembly Plant, Flat Rock Assembly, the Livonia Transmission Plant, the Dearborn campus including Ford World Headquarters, he said. “We’ve been on this journey with sustainability,” Holycross said.

Ford CEO Jim Farley is part of a global team developing strategies to develop cleaner transportation and cut greenhouse gas emissions that can contribute to climate change.

The goal is to apply this strategy to the company’s other properties in coming years, Holycross told the Free Press.

6,000 acres of solar farms

To fulfill the Ford order, DTE will need to find 6,000 acres of land to turn into a solar farm.

Already, Holycross said, motorists see DTE wind farms and solar farms from highways crisscrossing the state.

Ann Arbor and DTE Energy Co. are making plans for a large solar farm at Ann Arbor Municipal Airport in Pittsfield Township.

The utility will pay for the infrastructure but now it will have the financial support from Ford to the tune of about $120 million annually, Holycross said.

“When we look at the overall urgency around climate change and what needs to be done in order to abate the impacts of that, Ford has long been aligned with the Paris Climate Accord,” he said. “We were the first in the industry to lay out our strategy.”

The Paris Climate Agreement is an international climate change treaty.

A worker checks out a Ford Mustang Mach 1 before Ford President and CEO Jim Farley and DTE officials announce, during a press conference at Wayne Ford Michigan Assembly Plant Modification Center on Aug. 10, 2022, a historical deal between the two entities where Ford will be powering all its Michigan factories with sustainable energy.

Bill Ford, executive chair of the company, has advocated for cleaner operations for decades and pushed hard within the company founded by his great-grandfather.

In recent years, investors have rewarded companies that have reduced their impact on the environment. Banks have also crafted more favorable agreements based on measurable sustainability efforts.

“This puts our money where our mouth is,” Holycross said. “It can’t be a bunch of claims. You have to show and demonstrate accountability because it’s tied to how people are investing.”