Ferrari's decade-long renewable power deal marks a major shift towards industrial decarbonisation

Ferrari has taken a significant step toward its ambitious carbon neutrality goal for 2030 by signing a decade-long power purchase agreement (PPA) with Shell to secure 650 gigawatt-hours (GWh) of renewable electricity through 2034. This agreement will supply nearly half of the electricity required at Ferrari’s primary production facility in Maranello, Italy, a plant that consumes around 130 GWh annually. The remaining energy demand will be met through a combination of additional renewable power and renewable energy certificates (RECs), giving Ferrari a robust and diversified clean energy supply.

This PPA is a cornerstone of Ferrari’s strategy to reduce Scope 1 and Scope 2 greenhouse gas emissions, those produced directly by its operations and through purchased electricity, by at least 90% in absolute terms by 2030. Davide Abate, Ferrari’s Chief Industrial Officer, described the collaboration with Shell Energy Italia as a “concrete contribution” to the company’s decarbonisation roadmap, showcasing a purposeful shift toward cleaner energy use within the industrial heart of Ferrari’s operations.

The electricity Shell will provide stems mainly from a dedicated solar plant developed in Italy, enhancing supply reliability and demonstrating Shell’s transformation from a traditional energy giant to a provider of renewable power solutions for industry clients. Gianluca Formenti, CEO of Shell Energy Italia, highlighted this as a tangible example of Shell’s commitment to helping partners meet their sustainability targets through lower-emission energy solutions.

Ferrari’s renewable energy strategy encompasses more than just this PPA. Since 2021, the company has achieved approximately a 30% reduction in Scope 1 and 2 emissions, largely driven by switching to renewable electricity and shutting down a gas-fired trigeneration plant at Maranello in September 2024. This plant had generated electricity, heat, and cooling from natural gas, and its closure is projected to cut Ferrari’s Scope 1 and 2 CO₂ emissions by about 60% annually and reduce methane consumption by 70%, marking a substantial reduction in fossil fuel dependency. Complementing these actions, Ferrari is expanding solar photovoltaic capacity with the aim of reaching roughly 10 megawatts peak (MWp) by 2030, up from its current 5 MWp installation. These solar panels partly cover daytime electricity use and feed into a Renewable Energy Community initiative, which benefits other local businesses, residents, and institutions by sharing clean power resources.

Another key feature of the PPA is its financial structure, which includes fixed pricing elements. This mechanism shields Ferrari from volatile electricity prices and strengthens the company’s ability to maintain cost control while advancing its carbon reduction targets. By securing long-term renewable energy, Ferrari balances both environmental and economic objectives, a necessity in industrial decarbonisation efforts where energy costs are a significant operational factor.

Despite notable progress on Scope 1 and 2 emissions, Ferrari’s overall carbon footprint remains challenged by its value chain activities, which fall under Scope 3 emissions. These account for more than 90% of the company’s total emissions, mainly arising from the supply chain, purchased goods, and product use. While Ferrari has not yet developed its own greenhouse gas removal or carbon storage projects, it addresses unavoidable emissions by purchasing certified carbon avoidance credits. In 2024, the company cancelled 77,691 metric tons of CO₂-equivalent credits sourced from the Sustainability Community Project in Canada, encompassing diverse micro-projects aimed at energy efficiency, waste diversion, and fuel switching. Such initiatives, verified by the Verified Carbon Standard (VCS) – Verra, complement Ferrari’s direct emissions reductions to maintain carbon neutrality for Scope 1 and 2 emissions through offsetting.

This renewable energy deal with Shell is emblematic of a larger trend among European manufacturers, including luxury carmakers like BMW, Mercedes-Benz, and Porsche, who are increasingly committing to long-term renewable power agreements. For Ferrari, whose brand is inextricably linked to high-performance engineering and innovation, embedding sustainability into both manufacturing and vehicle design reflects an industry-wide evolution where environmental responsibility extends beyond the product to its entire lifecycle and manufacturing process.

The partnership also aligns with Shell’s broader renewable energy expansion, signalling how traditional oil and gas companies are pivoting toward supporting industrial decarbonisation with integrated energy services. Shell’s ongoing collaboration with Ferrari extends to motorsport as well, where both entities are involved in developing sustainable race fuels in compliance with upcoming Formula 1 regulations aimed at 100% sustainable power by the 2026 season. These joint ventures highlight the multifaceted nature of decarbonisation efforts, from factory floors to race tracks, demonstrating how industry leaders seek to drive sustainable transformation across all operational domains.

As industrial players in Italy and across Europe continue to embrace renewable energy through long-term arrangements, Ferrari’s deal with Shell sets a benchmark for how leading manufacturers can strategically integrate renewable supply, enhance energy resilience, and advance ambitious climate targets. The approach delivers both environmental and operational benefits, reflecting the evolving intersection between luxury manufacturing and industrial decarbonisation imperatives.