Vattenfall to supply Evonik with green electricity in Germany
Energy supplier Vattenfall and Gernam specialty chemicals company Evonik have concluded new long-term electricity supply contracts. From 2025, two Vattenfall solar parks in Schleswig-Holstein will supply Evonik with around 120 gigawatt hours of solar power per year for chemical production. The contracts have a term of ten years and fixed conditions. In this way, Evonik adds it wants to consciously use more green electricity.
Specifically, the Power Purchase Agreements (PPAs) stipulate that Vattenfall will supply Evonik with electricity from two solar parks in Schleswig-Holstein. One solar park is located south of Flensburg in Silberstedt, with details of the second site to follow shortly. They are due to be completed and connected to the grid in 2025 with a total capacity of 120 megawatts peak (MWp).
The agreed electricity volume of around 120 gigawatt hours (GWh) per year corresponds to the annual demand of around 35,000 households and displaces more than 50,000 tonnes/year of CO2 in the German electricity mix. Vattenfall and Evonik expect this cooperation to provide investment security, security of supply with green electricity and risk diversification for both parties. The current agreements are valid for ten years.
“Germany is the fastest growing market for renewable energies in Europe,” emphasises Martijn Hagens, responsible member of the Executive Board and Head of Business Area Markets at Vattenfall. “We see a wide range of growth opportunities here for the development and marketing of our solar, onshore and offshore projects. As the project with Evonik exemplifies, electricity partnerships with industry play a decisive role here.”
“Evonik has an ambitious sustainability strategy – and we are reliably implementing what we have set out to do: In 2022, Evonik concluded supply contracts for green electricity from wind power. In 2024, we look forward to the first major supply contracts for solar power. This marks another milestone on our way to converting our externally sourced electricity to 100% green by 2030,” says Thomas Wessel, the Executive Board member responsible for sustainability.
Thomas Wessel emphasizes the importance of the contracts with Vattenfall: “We are sourcing significantly more green electricity from external sources. Around 35 per cent of Evonik’s externally sourced electricity worldwide already comes from renewable sources. Thanks to the new agreements with Vattenfall, this share clearly exceeds the 50 per cent mark. We are therefore also making ourselves less dependent on fossil fuels.”
“The electricity partnership with Evonik underlines the long-term goal we are pursuing at Vattenfall: To enable fossil-free living along entire value chains,” explains Hagens. “This also includes our suppliers, our partners and our customers.” The electricity supply agreement includes partnership components such as a shared assumption of opportunities and risks in the operational management of the solar parks.
Chemical production requires the most consistent power supply possible. At the same time, the forecast and actual generation of renewable energy sources often differ. To cope with this, Evonik has a balancing group management system for managing its own chemical parks and sites. This enables Evonik to harmonise electricity supplies and demand. This active balancing group management also contributes to grid stability.
Observers expect demand for electricity partnerships between producers and industrial companies to increase in the coming years. According to a study by the German Energy Agency (Dena), the volume of PPAs in Germany could rise to 192 terawatt hours by 2030 – covering a quarter of Germany’s total electricity demand.
A secure, competitive and environmentally friendly supply of energy plays a decisive role, not least for the energy-intensive chemical industry in Germany. At the same time, the industry manufactures numerous products that make it possible to realise the idea of the energy transition in the first place.
