Ferrari has signed a ten-year agreement with Shell to purchase renewable electricity. The deal will provide 650 gigawatt-hours (GWh) of clean power through 2034. This is enough to cover nearly half of the energy needs at Ferrari’s main production plant in Maranello, Italy.

The plant uses around 130 GWh of electricity each year. The remaining electricity will be supplied through additional renewable energy and certificates.

The agreement is part of Ferrari’s plan to reduce carbon emissions and shift toward cleaner energy in its operations. Davide Abate, Chief Industrial Officer at Ferrari, remarked:

“This agreement represents a further step forward in our journey towards decarbonizing the Maranello plant. The collaboration with Shell Energy Italia to supply renewable energy represents a concrete contribution to our goal of reducing Scope 1 and 2 emissions by at least 90% in absolute terms by 2030.”

For Shell, the deal demonstrates its growing role in supplying green power to large industrial customers. The oil giant is also increasing the scale of its renewable power generation. The electricity for Ferrari will come from a dedicated solar plant located in Italy, which improves supply reliability.

Gianluca Formenti, CEO of Shell Energy Italia, noted:

“In line with our strategy of producing more energy with fewer emissions, this agreement is a tangible example of our commitment to providing energy solutions to support our customers and partners in achieving their decarbonization goals.”

What are the Key Features of the Deal?

The PPA, or power purchase agreement, will deliver renewable electricity for ten years. Shell will provide most of the energy directly from a dedicated plant. The remainder will come from renewable energy certificates (RECs). These certificates allow Ferrari to claim that its energy consumption is backed by clean power, even if the electricity does not flow directly from the plant.

This combination ensures that Ferrari’s operations in Italy rely heavily on renewable sources. By securing long-term renewable energy, the luxury carmaker reduces its exposure to volatile energy prices.

The PPA includes fixed-pricing elements. This helps Ferrari avoid sudden jumps in energy costs. It also strengthens its ability to meet climate targets for carbon emissions.

The deal covers:

• 650 GWh of electricity from renewable sources over 10 years.
• Nearly 50% of Ferrari’s energy needs at Maranello.
• Additional RECs and green power to cover the remaining electricity use.

Ferrari’s Carbon Reduction Goals and Renewable Energy Strategy 

Ferrari has committed to reducing Scope 1 and Scope 2 emissions by 90% by 2030. Scope 1 emissions come from Ferrari’s direct activities. This includes heating, production equipment, and company vehicles. Scope 2 emissions come from purchased electricity. Below are the ways the company uses to achieve its 2030 carbon neutrality goal.

The automaker reported several thousand metric tons of CO₂-equivalent emissions from operations in recent years. Progress has already begun as energy systems switch to cleaner power.

Switching to renewable electricity helps Ferrari cut Scope 2 emissions. The company has also invested in efficiency measures to reduce energy use across its facilities.

Moreover, it aims to streamline operations. They want to keep producing high-performance cars while using less energy overall. The company says some efficiency projects can reduce factory electricity use by 10–15% over time.

In recent years, Ferrari has been working on its energy mix. In 2024, it shut down a gas-fired trigeneration plant at Maranello. This plant had generated electricity, heat, and cooling from natural gas. By closing it, Ferrari reduced fossil fuel use and emissions.

However, the chart below shows that while Scope 1 and Scope 2 emissions show a gradual reduction, the total emissions show a steady increase. This is mostly due to growth in the company’s value chain activities.

Scope 3 emissions—mainly from the supply chain, purchased goods, and product use—are the dominant source, over 90%, and consistently drive the company’s total footprint.

Fueling Renewable Energy Expansion 

The Italian luxury sports carmaker is expanding its use of solar energy. It plans to increase photovoltaic (PV) capacity to around 10 megawatts peak (MWp) by 2030. Solar panels are installed on factory rooftops and other company-owned spaces. These panels already cover part of the factory’s daytime electricity consumption.

The company also partnered with Enel X to create a Renewable Energy Community (REC). This community lets nearby businesses, residents, and public institutions use clean power from Ferrari’s solar installations. It helps spread the benefits of renewable energy beyond Ferrari itself. The community has dozens of participants and supports local energy independence.

Ferrari has invested in energy-efficient transformers and storage systems. These upgrades improve the efficiency of electricity use and reduce energy waste. Combined with the new PPA, Ferrari’s approach is designed to achieve both emissions reduction and cost stability.

Offsetting the Unavoidable: Ferrari’s Carbon Credit Strategy

Ferrari tackles residual greenhouse gas (GHG) emissions. They support certified carbon avoidance projects by buying carbon avoidance credits. By using this method with direct emission cuts, the company reached carbon neutrality for Scope 1 and Scope 2 emissions in 2021, 2022, and 2023 across all its operations.

In 2024, Ferrari cancelled 77,691 metric tons of CO₂-equivalent carbon credits. These credits came from the Sustainability Community Project in Canada. They were certified by the Verified Carbon Standard (VCS) – Verra. This project combines over 800 carbon-reduction micro-projects from SMEs, municipalities, and NGOs. It includes more than 1,000 buildings in Quebec.

The goal is to reach up to 10,000 customer facilities in a sustainable community. The GHG reductions come from activities such as improved energy efficiency, waste diversion, and fuel switching.

Also, Ferrari partners with ClimateSeed. This ensures that the projects follow strict environmental, social, and financial standards. The company hasn’t developed its own GHG removal or storage projects yet. However, it adjusts its carbon credit purchases each year. This helps offset unavoidable emissions and meet its carbon neutrality goals.

Industry Implications: Luxury Cars Join the Clean Energy Race

This deal reflects a growing trend among manufacturers in Europe. Companies are signing long-term renewable energy deals. This helps them cut emissions and stabilize energy costs.

For automakers, energy use is becoming an important part of environmental responsibility. Reducing emissions is not just about electric or hybrid cars. It also depends on how factories are powered.

Other car manufacturers are also pursuing renewable energy. BMW, Mercedes-Benz, and Porsche have all made deals to source clean power for major facilities. Ferrari’s agreement shows that luxury car makers are now also integrating renewable energy into their main operations.

Driving Forward: A Sustainable Shift for Ferrari

Ferrari’s renewable energy agreement with Shell is expected to have a lasting impact on its operations. It ensures a stable supply of clean energy and supports broader climate goals. It also ensures alignment between how Ferrari builds cars and the electric models it plans to sell in the future.

The partnership also strengthens Shell’s position in providing renewable solutions to industrial clients. It shows that legacy energy companies can play a role in helping others transition to cleaner power.

As Italy and other European countries aim to increase renewable energy use, long-term agreements like this one may become more common. Companies can benefit from cost predictability, emission reductions, and support for their sustainability goals.