Komatsu UK, a pioneer in construction and mining equipment, has partnered with solar installation company - AR Power to install a 1.76 MWp solar photovoltaic (PV) system at its North East manufacturing facility.
The installation of the advanced solar system is part of Komatsu’s ongoing strategy to improve energy efficiency, reduce operational costs and meet sustainability goals across its manufacturing operations.
New solar PV installation
Solar PV installation, which comprises 3,912 panels, is expected to generate about 1.6 million kWh
The new solar PV installation, which comprises 3,912 panels, is expected to generate approximately 1.6 million kWh of electricity annually.
Komatsu will significantly reduce its reliance on grid electricity, cutting its carbon emissions by an estimated 8.75 million kg per year. This aligns with both Komatsu’s global sustainability targets and the UK’s push towards greener manufacturing solutions.
Integrate renewable energy solutions
Paul Blanchard, Managing Director of Komatsu UK, said: "This partnership with AR Power allows us to integrate renewable energy solutions into our manufacturing operations, reducing energy costs and enhancing sustainability."
He adds, "The decision to invest in solar power reflects our ongoing commitment to improving energy efficiency and reducing our carbon footprint, while also supporting long-term cost savings through asset finance."
Solar PV system
Komatsu chose an asset finance model over a PPA due to the higher return on investment
Komatsu chose an asset finance model over a Power Purchase Agreement (PPA) due to the higher return on investment and anticipated payback period of around seven years.
The solar PV system, once fully operational, will be owned outright by Komatsu following the completion of the finance term, allowing the company to benefit from long-term energy savings.
Demand for sustainable energy solutions
Stephen Armstrong, Head of Commercial at AR Power, said: "This project demonstrates how manufacturing companies can utilise renewable energy solutions to improve operational efficiency and reduce energy costs."
He adds, "We are proud to have designed and be currently installing the largest commercial solar panel installation we’ve undertaken, reflecting the increasing demand for sustainable energy solutions across the industrial sector."
Komatsu’s operations at the Birtley site
The project, which began at the start of the year, is scheduled for completion by July 2025.
The solar PV system will provide reliable, cost-effective energy for Komatsu’s operations at the Birtley site, where the company manufactures and supplies critical equipment for industries, including construction and mining.
