Komatsu UK, a leader in construction and mining equipment, has teamed up with AR Power, a solar installation company, to implement a 1.76MWp solar photovoltaic (PV) system at its manufacturing facility in North East England. This move is part of Komatsu’s ongoing efforts to enhance energy efficiency, reduce operational costs, and meet its sustainability targets.
The new solar PV array consists of 3,912 panels and is expected to generate approximately 1.6 million kWh of electricity annually. This will significantly reduce Komatsu’s dependence on the national grid, cutting its carbon emissions by around 8.75 million kg per year. This initiative supports both Komatsu’s global sustainability objectives and the UK’s push towards greener manufacturing solutions.
Commitment to Sustainability
Paul Blanchard, Managing Director of Komatsu UK, emphasized the importance of the partnership with AR Power. “This collaboration allows us to incorporate renewable energy solutions into our manufacturing processes, lowering energy costs and enhancing sustainability. Investing in solar power reflects our commitment to improving energy efficiency, reducing our carbon footprint, and supporting long-term cost savings,” Blanchard said.
Long-Term Energy Savings
Instead of opting for a Power Purchase Agreement (PPA), Komatsu chose an asset finance model. This decision was based on the higher return on investment and the expected payback period of about seven years. Once the finance term concludes, Komatsu will own the solar PV system outright, enabling the company to reap the benefits of long-term energy savings.
Supporting Sustainable Solutions
Stephen Armstrong, Head of Commercial at AR Power, highlighted the significance of the project. “This project shows how manufacturing companies can use renewable energy solutions to improve operational efficiency and reduce energy costs. We’re proud to be installing the largest commercial solar panel system we’ve ever undertaken, reflecting the growing demand for sustainable energy in the industrial sector.”
The project, which began earlier this year, is set to be completed by July 2025. Once operational, the solar PV system will provide a reliable and cost-effective energy source for Komatsu’s Birtley site, where the company manufactures and supplies essential equipment for industries such as construction and mining.
