Shell to deliver 650 GWh of renewable electricity to Ferrari through 2034, covering nearly half of Maranello’s consumption.
Deal supports Ferrari’s target to cut Scope 1 and 2 emissions by 90% by 2030.
Agreement reflects Italy’s expansion of corporate PPAs as energy security and cost stability reshape industrial strategy.
Shell and Ferrari Strike Long-Term Renewable Power Agreement
Shell and Ferrari have signed a decade-long power purchase agreement that will supply the luxury automaker with 650 gigawatt hours of renewable electricity through 2034. The agreement, announced Tuesday, deepens the companies’ long-running partnership and introduces one of Italy’s most substantial corporate PPAs to date.
The electricity will be generated from a Shell-developed plant and is expected to meet nearly half of the total energy demand at Ferrari’s Maranello factory near Modena. The site is the core of Ferrari’s production footprint and the hub for its electrification plans as the company expands hybrid and fully electric models over the next decade.
Corporate PPAs have grown rapidly in Italy as manufacturers push for cost certainty and lower-carbon operations. The country’s industrial companies have used the mechanism to secure price stability against volatile wholesale markets, while aligning with national and EU climate policies that encourage private-sector investment in renewable energy.
Decarbonizing a High-Performance Supply Chain
Ferrari’s emissions profile has shifted as the company scales up electrified vehicles and expands production capacity at Maranello. The PPA forms a central pillar of its Scope 1 and 2 strategy, which aims for a 90 percent absolute reduction in operational emissions by 2030.
Shell Energy Italia will also supply additional power and renewable energy certificates to ensure that all electricity consumed by Ferrari in Italy is matched with renewable generation. The certificates bridge the remaining gap beyond the direct PPA volumes, allowing Ferrari to fully cover operations with clean power.
The agreement represents one of the most significant steps Ferrari has taken to cut emissions generated from purchased electricity, historically one of its largest sources of operational climate impact.
Gianluca Formenti, CEO of Shell Energy Italia, said: “We are proud to further strengthen our partnership with Ferrari through the signing of this important … agreement.”
Shell already partners with Scuderia Ferrari, the company’s Formula One team, including work on fuels and lubricants. The new deal extends the collaboration beyond motorsport and into Ferrari’s core manufacturing operations.
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Why the Deal Matters for Investors and Executives
For Ferrari, the PPA reduces exposure to energy volatility that has defined European markets since 2021 and strengthens its ESG narrative ahead of upcoming vehicle launches dependent on a growing share of electrified production. The 650 GWh commitment gives investors a measurable decarbonisation lever at a time when regulators and asset managers are scrutinising automotive transition plans more closely.
For Shell, the agreement supports its goal to expand corporate energy solutions and build long-term customer relationships across Europe. The company continues to face pressure over its oil and gas strategy, and its power and renewables division is seen by analysts as a core part of its ability to stabilise revenue and meet climate expectations from institutional shareholders.
The deal also illustrates how Europe’s industrial companies are reconfiguring supply chains around green electricity availability. Access to reliable renewable power has become a competitive factor for manufacturers with energy-intensive operations, particularly those expanding electrified mobility, precision engineering or advanced materials.
Policy and Market Context in Italy
Italy’s growing PPA market reflects a policy environment shaped by the EU’s Fit for 55 package, national incentives for renewable deployment and a tightening of emissions reporting requirements. Manufacturers have responded by accelerating long-term procurement of green electricity to meet scope-based targets and hedge against market risk.
The Shell–Ferrari agreement aligns with Italy’s broader industrial decarbonisation agenda, which includes grid expansion, streamlined permitting for renewables and private-sector partnerships to reduce carbon intensity in high-value manufacturing.
Global Significance
The deal provides a case study for global automotive players navigating capital-intensive electrification strategies. As carmakers compete for low-carbon production capacity, reliable clean power sourcing is emerging as a differentiator for both operational resilience and investor confidence.
For energy providers, the agreement demonstrates the scale of opportunity in corporate renewables procurement, especially in markets where regulatory clarity and grid access are improving.
As the energy transition reshapes Europe’s industrial landscape, long-term PPAs such as this one are becoming an essential part of how manufacturers secure supply, reduce operational emissions and retain competitiveness in a tightening regulatory environment.
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