German car maker BMW signed a deal with the UAE's Emirates Global Aluminium to source metal made using solar power, as it looks to slash carbon emissions.
The Munich-based car manufacturer signed a "triple-digit million euro contract" with EGA to supply it with 43,000 metric tonnes of aluminium, which will be produced using power from Dubai's Mohammed Bin Rashid Al Maktoum Solar Park, BMW said in a statement on Tuesday.
The move will help the company reduce its carbon dioxide emissions by approximately 2.5 million tonnes over the next 10 years. This is equivalent to about three per cent of the carbon dioxide targets BMW has set for its supplier network.
Producing aluminium is highly energy-intensive, the use of green power – such as solar electricity – offers considerable potential for reducing CO2 emissions. The German car maker aims to lower carbon dioxide emissions per vehicle by 20 per cent from 2019 levels and is adopting measures to achieve this goal.
"We will be able to meet over 50 per cent of our carbon dioxide targets for the supplier network, just by using green power," Andreas Wendt, member of the board of management of BMW responsible for Purchasing and Supplier Network, said.
"The use of solar electricity for producing aluminium is a major step in this direction."
The metal will be used in BMW's foundry in Landshut to manufacture body and drive-train parts for its vehicles.
With this deal, EGA also becomes the first company in the world to use solar energy to produce aluminium commercially that it will supply exclusively to the luxury car maker.
"Aluminium is light, strong and infinitely recyclable," Abdulnasser Bin Kalban, chief executive of EGA, said. "That is why it plays such an important role in the development of a more sustainable society."
Producing aluminium to be used in vehicle supply chains is an energy intensive process, BMW said, adding that its carbon emissions could increase by more than a third by 2030 if corrective actions are not taken.