Google has announced a strategic collaboration with BlackRock to accelerate the development of solar energy in the Asia-Pacific region, as part of its ambitious goal to achieve net zero emissions in all its operations and value chain by 2030. This agreement focuses on creating new opportunities for clean energy in regions with electric grids that still heavily rely on fossil fuels.
The partnership with BlackRock’s Climate Infrastructure division will enable the development of a 1 gigawatt (GW) solar capacity in Taiwan, furthering Google’s aim to operate with 100% carbon-free energy at all times. Within this collaboration, Google will make a capital investment in New Green Power (NGP), a Taiwanese solar development company owned by BlackRock’s portfolio, to facilitate the expansion of its portfolio of large-scale solar projects.
Challenges and opportunities in the Asia-Pacific region
Many countries in the Asia-Pacific region face unique challenges in adding new carbon-free energy, including land constraints, low availability of commercially scalable solar and wind resources, and high construction costs. In Taiwan, fossil fuels such as imported coal and natural gas generate nearly 85% of electricity. To overcome these obstacles, companies play a crucial role in finding new strategies to increase the supply of available renewable energy and promote emerging technologies that enable the complete decarbonization of regional electrical systems.
Google’s investment in NGP, subject to regulatory approval, will serve as development capital for its portfolio of new 1 GW solar projects, catalyzing critical capital and debt financing for those projects. Google is expected to acquire up to 300 MW of solar energy from this portfolio through power purchase agreements (PPAs) and associated renewable energy certificates (T-RECs) to meet the electricity demand of its data center campus, cloud region, and office operations in Taiwan.
Impact on the supply chain and reduction of indirect emissions
Furthermore, Google could offer a portion of this clean energy capacity to its suppliers and semiconductor manufacturers in the region, helping them advance their own sustainability goals and reducing Google’s Scope 3 emissions (indirect emissions from its value chain). A significant portion of Google’s Scope 3 footprint can be traced back to the electric grids powering its suppliers and users, so overall decarbonization and partnerships like this are crucial to its net zero emissions goal.
David Giordano, Global Head of Climate Infrastructure at BlackRock, commented: “As we witness growth in demand for digital services, driven by AI and data-centric technologies, it becomes imperative to invest in clean energy. The partnership is a testament to the shared commitment between Google and BlackRock to drive the transition towards a low-carbon economy.”
Driving decarbonization in the Asia-Pacific region
This collaboration builds on over five years of efforts to accelerate the transition to clean energy by developing markets and policies across Asia-Pacific. Google’s advocacy and engagement efforts were a key factor in the 2017 amendment to Taiwan’s Electricity Act, which opened the market to allow non-utility companies to directly purchase renewable energy. This work led Google to become the first corporate buyer to sign a PPA in the market.
Continued progress towards the carbon-free energy goal is underway throughout Asia-Pacific with recent announcements in Australia and Japan. In parallel, Google is working with partners to support policies that accelerate the decarbonization of electrical grids. Google is a founding member of the Asia Clean Energy Coalition (ACEC), which brings together energy buyers, suppliers, and policymakers to help improve the policy and regulatory environment for corporate renewable electricity procurement.
This partnership marks a significant milestone in Google’s journey towards net zero emissions and carbon-free energy, and there is much more to be done both in Asia-Pacific and globally.