Austrian chemical firm Borealis says it has reached an important milestone on its way to increase the share of renewable energy used in its Swedish operations with the signing of a power purchase agreement (PPA) with Axpo Nordic, Switzerland’s largest producer of renewable energy and an international leader in energy trading and the marketing of solar and wind power.
Under the agreement announced today, Axpo will supply Borealis with renewable electricity generated by the 60 MW Hultema wind farm in Sweden, owned by Swiss infrastructure asset manager Reichmuth&Co and currently under construction. The PPA includes the annual supply of more than 130,000 MWh of wind power to Borealis production location in Stenungsund, Sweden over the next ten years. Delivery will begin in January 2024.
Axpo Sweden Senior Originator Cecilia Bergman commented: “This transaction marks another milestone in our corporate PPA business and demonstrates the key role that Axpo Nordic is playing in the energy transition. Sweden is an attractive market for international renewable energy investors. The continual expansion of wind farms allows industrial companies to source renewable electricity for their facilities onsite to reduce emissions and meet sustainability targets. We are happy to act as an intermediary between producers and consumers, boosting revenues from renewable energies and enabling industries to get greener.”
For Borealis, the agreement with Axpo Nordic helps significantly boost the company’s share of renewable energy used by its production location in Stenungsund, Sweden. Under the PPA, the renewable electricity generated will reduce Borealis’ indirect carbon dioxide emissions (defined as Scope 2 emissions by the Greenhouse Gas Protocol) at its Swedish operations by approximately 10 000 tons per year. The deal will also move the company closer to realising its sustainability-related goals of increasing the share of renewables in its electricity mix to 40% by 2025, and ensuring that by 2030 100% of the electricity used to power its polyolefins and hydrocarbons operations is from renewable sources.
Wolfram Krenn, Borealis Executive Vice President Base Chemicals & Operations, said: “We are very pleased to further accelerate our sourcing of sustainable power in Sweden through this new wind PPA with Axpo. The agreement takes us closer to reaching our ultimate target of ensuring that by the end of the decade all the electricity we use is generated by renewables – with this, we take another step towards re-inventing essentials for sustainable living.”