With the aim of accelerating its net-zero goals, Rolls-Royce Holdings (GB:RR) inaugurated the new Berghof Solar Park in Tengen, Southern Germany on June 3.
The new solar park with 3.7 megawatts-peak (MWp) capacity will save 1,300 metric tons of carbon dioxide (CO2) per year in electricity purchases.
At the time of writing, shares of the U.K.-based multinational aerospace and defense company that designs, develops, manufactures, and services integrated power systems are trading almost 5% higher.
Details of the New Solar Park
The new plant will generate around four million kilowatt-hours of electricity per year, leading to savings of 1,300 tons of CO2 a year by avoiding fossil fuels for power generation.
Notably, by 2030, the civic enterprise solar complex targets to achieve the goal of converting regional energy supply mostly to renewable energy.
An initial power purchase agreement has been signed with the operators for a period of 10 years.
Furthermore, by 2050, RR aims to be climate neutral across all its global locations, including all production and supply chains, as well as all product portfolios in all the recognized categories.
Management Weighs In
Chief Technology Officer and COO of Rolls-Royce Power Systems, Dr Otto Preiss, said, “With our Net Zero at Power Systems program, we are pursuing strict climate protection targets. With ambitious interim targets for 2030, we aim to be completely climate neutral by 2050 across all global sites and areas from production to supply chains to our product portfolio, i.e. in all three recognized categories Scope 1, 2 and 3.”
Wall Street’s Take
Last week, Societe Generale analyst Zafar Khan upgraded Rolls-Royce Holdings from Sell to Hold but lowered the price target to GBp 90 (2.3% downside potential) from GBp 97.
According to TipRanks’ analyst rating consensus, Rolls-Royce Holdings is a Hold, based on one Buy, four Holds and one Sell ratings. The average Rolls-Royce Holdings stock forecast is GBp108.88, implying 18.2% upside potential.
Conclusion
Transitioning to net zero greenhouse gas emissions is the need of the hour, and most global giants like Rolls-Royce are fast-approaching towards the same.
Rolls-Royce is rightly creating meaningful collaborations, especially with local partners, to reach its goals with the opening of the new solar park.
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