Vattenfall and Evonik have recently inked new long-term electricity supply contracts, aiming to bolster Evonik’s green energy consumption for chemical production. Commencing in 2025, two solar parks operated by Vattenfall in Schleswig-Holstein will furnish Evonik with approximately 120 gigawatt hours of solar power annually over a decade, under fixed conditions termed as “Power Purchase Agreements” (PPA). This initiative reflects Evonik’s commitment to embracing renewable energy sources more prominently.
Martijn Hagens, Head of Business Area Markets at Vattenfall, underscores Germany’s burgeoning renewable energy market and the potential it holds for their solar projects, citing the collaboration with Evonik as a prime example of industry-electricity partnerships driving progress.
Thomas Wessel, Evonik’s Executive Board member in charge of sustainability, echoes this sentiment, highlighting the company’s trajectory towards a greener energy mix. By securing contracts for wind power in 2022 and now solar power in 2024, Evonik is steadily advancing towards its goal of sourcing 100% green electricity externally by 2030.
The agreements outline Vattenfall’s commitment to supplying electricity from two solar parks in Schleswig-Holstein, with specifics on the second site to follow soon. These parks, with a combined capacity of 120 megawatts peak (MWp), are scheduled for completion and grid connection in 2025. The contracted electricity volume of around 120 gigawatt hours (GWh) annually is equivalent to the power needs of approximately 35,000 households and will offset over 50,000 tonnes of CO2 emissions yearly within the German electricity mix.
Both Vattenfall and Evonik anticipate that this collaboration will provide investment stability, ensure a secure green energy supply, and diversify risks for both entities over the ten-year term of the agreements.
The significance of these contracts is underscored by Wessel, who notes that they substantially increase Evonik’s reliance on renewable energy sources. Currently, over 35% of Evonik’s externally sourced electricity worldwide is renewable, a figure that will significantly surpass 50% with the new agreements, thus reducing dependency on fossil fuels.
Hagens emphasizes Vattenfall’s overarching goal of facilitating fossil-free living across value chains, emphasizing collaborative elements within the electricity supply agreement such as shared responsibility for operational management of the solar parks.
Given the variability of renewable energy generation, particularly in meeting the consistent power demands of chemical production, Evonik employs a robust balancing group management system to harmonize electricity supply and demand, thereby contributing to grid stability.
Industry analysts anticipate a surge in demand for electricity partnerships between producers and industrial players in the coming years. A study by the German Energy Agency (Dena) forecasts that by 2030, Power Purchase Agreements (PPAs) could cover a quarter of Germany’s total electricity demand, reaching a volume of 192 terawatt hours. Such partnerships are crucial for ensuring a secure, competitive, and environmentally sustainable energy supply, especially for Germany’s energy-intensive chemical industry, which also plays a pivotal role in enabling the transition towards renewable energy.
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