Please ensure Javascript is enabled for purposes of website accessibility

Amazon Takes Four Giant Steps in March Towards Net Zero Carbon

By Scott Levine - Mar 12, 2020 at 4:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Rely on AWS for cloud services? You may have the sun and wind to thank.

In pursuit of its goal to be carbon neutral across its businesses by 2040, Amazon (AMZN 4.03%) has announced plans to develop four renewable energy projects in Australia, Spain, Sweden, and the United States, clearly signaling that it's taking its pledge seriously. When completed the four new solar and wind projects will represent about 300 megawatts (MW) of capacity.

With completion of these projects expected in the next two years, Amazon foresees these projects as helping the company to achieve its more immediate goal of sourcing 80% of its energy needs from renewable sources by 2024. Moreover, according to the company, the four projects will "supply energy to the company's [Amazon Web Services] AWS data centers, which power Amazon and millions of AWS customers globally."

A hand holds up a light bulb in front of the sun.

Image source: Getty Images.

What's the deal with these deals?

Representing Amazon's first renewable energy project in Australia, the 60-MW solar project located in New South Wales is expected to be completed in 2021 and will use bifacial modules provided by Canadian Solar, a leading solar panel manufacturer. In Spain, Amazon is planning a 50-MW solar facility, which is anticipated to be operational in 2021, while in the same year the company intends on completing a 122-MW onshore wind project in Sweden. And in the United States, Amazon is developing a 65-MW solar project in Virginia, where the company has already developed 11 other renewable energy projects.

Investors can expect the company to continue reporting the development of similar solar and wind projects worldwide to help it meet its 2040 goal of net zero carbon, while the nature of the power purchase agreements provide the company with clarity into its future expenses -- an especially valuable benefit considering the volatility in the price of conventional energy sources.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$2,221.55 (4.03%) $86.05
Canadian Solar Inc. Stock Quote
Canadian Solar Inc.
CSIQ
$30.31 (3.84%) $1.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.