Borealis, one of the world’s providers of advanced and sustainable polyolefin solutions and a European front-runner in polyolefins recycling 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, it was announced today.
Under the agreement, 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 the Borealis production facility in Stenungsund for the next ten years. Delivery will begin in January 2024.
New milestone
Axpo Sverige 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.”
Cecilia Bergman adds, "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.”
Boosting company’s share
The renewable electricity generated will reduce the indirect carbon dioxide emissions
For Borealis, the agreement with Axpo Nordic will help significantly boost the company’s share of renewable energy used by its Stenungsund facility.
Under the PPA, the renewable electricity generated will reduce the 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 realizing its sustainability-related goals.
These include 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.
Sourcing of sustainable power
Borealis Executive Vice President - Base Chemicals & Operations, Wolfram Krenn, 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.”
Axpo Group
Axpo Nordic is part of the Axpo Group, an energy company in Switzerland. The wholly owned subsidiary was founded in 2003 for the markets in Northern Europe and the Baltic region.
The focus of its business activities in the Nordics is on long-term power supply and purchase agreements. In addition to its PPA business, Axpo Nordic develops bespoke products and associated services for its customers, such as retailers, industry, and producers.
