Starting from January 2024, European electricity and heat retailer Vattenfall will be supplying polyolefins solutions provider Borealis with renewable energy from its hydropower plants, as part of a long-term renewable hydropower purchase agreement (PPA) made in December 2023.
Over the next 10 years, Vattenfall will apparently supply 175 GWh of renewable energy per year to Borealis’ operations in Stenungsund from its hydropower plants, located along the Lule River in Sweden.
As a result of this PPA with Vattenfall and nine other PPAs signed with different partners since 2021, Borealis states it has achieved its 2025 intermediate target of sourcing 40% of the electricity needed for its polyolefins and base chemicals operations from renewable sources, moving the company towards utilizing 100% renewable electricity in the production processes of these two business segments by 2030.
This development represents a notable move towards decarbonization, as the renewable electricity generated through the new PPA is anticipated to result in a reduction of approximately 6,800 metric tons per year in Borealis’ Scope 2 emissions at its Stenungsund facility, reportedly calculated following the Greenhouse Gas Protocol market based approach with residual emission factor of 2022, by AIB (Association of Issuing Bodies).
In the course of the ten-year PPA, this apparently amounts to a total reduction of 68,250 metric tons of Scope 2 emissions, greenhouse gas GHG emissions produced on-site through purchased or otherwise obtained electricity, as well as emissions stemming from steam, heat, and cooling processes.
“We strive to support our customers in achieving their sustainability goals, so we are pleased about the cooperation with Borealis and the opportunity to provide energy solutions that meet Borealis’ ambitious sustainability targets. The agreement makes it possible for Borealis to have a long-term power deal based on fossil free production. The partnership also underlines our ambition to become a leading provider of corporate PPAs,” confirms Branislav Slavic, head of customers & solutions Nordics at Vattenfall.
In 2022, Borealis signed a PPA with VERBUND to supply 220 GWh of hydropower annually to Borealis operations in Schwechat, Austria, with the power supplied by VERBUND’s Austrian hydropower plants in Aschach and Abwinden-Asten on the Danube River.
At the end of last year, Borealis entered a 9 year PPA with Alpiq to annually supply around 90 gigawatt hours of renewable electricity from Renewable Power Capital’s Markkikallio wind farm to Borealis’ Porvoo production facilities, with the resultant electricity anticipated to reduce Scope 2 emissions by an estimated 45.600 metric tons every year.
If you liked this story, you might also enjoy:
The Brief: How viable is biorecycling for plastics?
Report: How the top brands are progressing on packaging sustainability
The Brief: Using ocean-bound plastic in packaging – how, why and should we?
No comments yet