Google has announced a significant investment in Taiwan’s New Green Power (NGP), a firm owned by a BlackRock fund, with the potential to purchase up to 300 megawatts (MW) of renewable energy. This strategic move aims to mitigate carbon emissions both for Google and its supply chain.
In recent years, corporations have faced mounting pressure from investors to address greenhouse gas emissions linked to their operations and value chains. Big Tech companies, in particular, have set ambitious targets to minimize their environmental impact. Google, known for its commitment to sustainability, strives to operate on carbon-free energy at all times. However, the rapid growth in demand for data-processing capacity, driven by advancements in artificial intelligence, has led to increased emissions.
Taiwan plays a pivotal role in Google’s cloud technology infrastructure, housing both data centers and company offices. Despite this, the region heavily relies on fossil fuels, with nearly 85% of its power generated from non-renewable sources, according to Amanda Peterson Corio, Google’s Global Head of Data Center Energy.
“The goal of this investment is really to support the build-out of a large-scale solar pipeline in Taiwan,” Corio stated. This move aligns with Google’s broader objective to promote renewable energy development in regions where decarbonization is challenging due to underdeveloped infrastructure and regulatory constraints that limit corporate green power procurement.
Key Details of Google’s Investment in New Green Power
| Aspect | Details |
|---|---|
| Stakeholder | |
| Investment Target | New Green Power (NGP) |
| Potential Renewable Energy Purchase | Up to 300 MW |
| Owned by | BlackRock’s Climate Infrastructure Business |
| Current Fossil Fuel Dependency in Taiwan | ~85% |
| Taiwan’s Solar Capacity Target by 2025 | 20 GW |
| Taiwan’s Solar Capacity Target by 2050 | 80 GW |
New Green Power, a prominent solar developer and operator in Taiwan, is managed by BlackRock’s Climate Infrastructure business. David Giordano, BlackRock’s Global Head of Climate Infrastructure, emphasized NGP’s leadership in the renewable energy sector within the region. Although Google and BlackRock have not disclosed the specific size of the equity stake taken in NGP, Corio mentioned that the investment is expected to facilitate both equity and debt financing for the expansion of NGP’s 1-gigawatt (GW) solar pipeline.
Taiwan has set ambitious targets for its solar capacity, aiming for 20 GW by 2025 and expanding to 80 GW by 2050. These goals reflect the country’s commitment to transitioning from fossil fuels to renewable energy sources. Google’s investment in NGP is a strategic step towards contributing to these national objectives.
Beyond powering its own operations with solar energy, Google plans to extend the benefits of its renewable energy purchases to its suppliers and manufacturers in Taiwan. This initiative will help reduce Google’s Scope 3 emissions, which are indirect emissions linked to its value chain. By sharing renewable energy with its partners, Google aims to lower the carbon footprint associated with its products and services.
- Google invests in Taiwan’s New Green Power, a BlackRock fund-owned firm.
- Potential purchase of up to 300 MW of renewable energy.
- Supports the development of a large-scale solar pipeline in Taiwan.
- Investment aligns with Google’s goal to operate on carbon-free energy.
- Facilitates equity and debt financing for NGP’s 1 GW solar pipeline.
- Taiwan targets 20 GW solar capacity by 2025 and 80 GW by 2050.
- Aims to reduce Google’s Scope 3 emissions by sharing solar power with suppliers.
Decarbonizing regions like the Asia Pacific presents unique challenges. Infrastructure development and regulatory frameworks often lag behind those of more developed areas, complicating efforts to procure green power. However, investments like Google’s in NGP demonstrate a commitment to overcoming these obstacles and advancing the renewable energy agenda.
This investment is part of Google’s broader sustainability strategy, which includes several initiatives aimed at reducing its environmental impact. Google has already made significant strides in sourcing renewable energy, with the company purchasing more renewable energy than any other corporation globally. The focus now extends to its value chain, seeking to influence and support its partners in their sustainability efforts.
Google’s investment in NGP could serve as a model for other corporations looking to make impactful contributions to renewable energy development. By leveraging its resources and influence, Google is setting a precedent for corporate responsibility in addressing climate change. As more companies follow suit, the collective impact on reducing global carbon emissions could be substantial.
Featured Image courtesy of PBS