AUSTRIA – Austrian chemical company, Borealis and VERBUND have signed a ten-year power purchase agreement (PPA) to supply a yearly 220 GWh of hydropower to Borealis operations in Schwechat, Austria, from January 2023.
The power will be supplied from two of VERBUND’s Austrian hydropower plants in Aschach and Abwinden-Asten on the Danube River.
The company is thought to generate around 97% of its electricity from renewable energy sources, largely hydro-based.
Borealis hopes that the agreement will contribute towards its goal of utilizing 100% renewable electricity in its Polyolefins and Hydrocarbons businesses by 2030.
It also aims to cut down on the generation of carbon, with the renewable electricity generated as part of the power purchase agreement expected to reduce Scope 2 emissions at the site by around 75,000 tonnes every year.
Thomas Gangl, CEO of Borealis said: “The ambitious sustainability targets outlined in our Borealis Strategy 2030 are rapidly coming into reach, thanks in great part to our cross-sector partnership with VERBUND.
“Thanks to the around 2,200 GWh to be delivered by way of this PPA to our Schwechat operations over the next ten years, we are on track to achieve our 2030 goal of using 100% of electricity from renewable sources. These efforts are core components in our aim to re-invent essentials for sustainable living.”
Commenting on the deal, Michael Strugl, CEO of VERBUND added: “We are delighted to have entered into this long-term strategic agreement with Borealis.
“At VERBUND, we aim to use our renewables knowledge and experience to accompany our partners on the decarbonization journey.
“The only way to reach ambitious climate and energy targets is through innovation, close collaboration, and perseverance. Together with our partner Borealis, we are driving the energy transition in Austria and all of Europe.”
Earlier this month, Borealis signed a power purchase agreement with Eneco for a ten-year renewable electricity supply at its Belgian production plant.
Eneco has an exclusive offtake agreement for the output generated at the SeaMade offshore wind farm in the Belgian North Sea, which is expected to supply 150 GWh to Borealis every year starting in 2024.
Around 1.5 TWh of renewable electricity is expected to be generated over the ten years, and it is hoped to lower the Scope 2 emissions of Borealis’ operations by around 22,300 tonnes every year.
Borealis anticipates that the two PPAs will enable it to increase its share of renewable energy to 40% by 2025 and 100% in its Polyolefins and Hydrocarbons division by 2030.
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