Vattenfall and Borealis, one of the world’s leading providers of advanced and sustainable polyolefins solutions and a European front-runner in polyolefins recycling, have signed their first long-term renewable hydropower purchase agreement (PPA). In January 2024 Vattenfall began supplying Borealis’ operations in Stenungsund with 175 GWh per year of renewable energy from Vattenfall’s hydropower plants along the Lule River in northern Sweden.
By supporting customers in achieving their sustainability goals, Vattenfall is committed to building a future where everyone can choose fossil free ways to move, make and live. In December 2023, Vattenfall and Borealis signed their first long-term purchase agreement (PPA) for hydropower, set to run for ten years.
'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', says Branislav Slavic, Head of Customers & Solutions Nordics Vattenfall.
This development represents a notable move towards decarbonisation, 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* from its Stenungsund (1) facility. Over the course of the ten-year PPA, this will amount to a total of 68,250 metric tonnes of prevented Scope 2 emissions.
'By partnering with Vattenfall for this ten-year Power Purchase Agreement, we are taking a major step towards achieving our ambitious Energy & Climate targets, showcasing our dedication to re-inventing essentials for sustainable living. This long-term collaboration carries significant importance, catapulting Borealis beyond the critical milestone of securing over 40 per cent of our electricity for our Polyolefins and Base Chemicals operations from renewable sources well ahead of time,' says Wolfram Krenn, Executive Vice President Base Chemicals & Operations.
Furthermore, it moves Borealis one step closer to utilising 100 percent renewable electricity in the production processes of these two key business segments by 2030.
*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.
[1] Calculated following Greenhouse Gas Protocol, Market based approach with residual emission factor of 2022 by AIB (Association of Issuing Bodies)
Source: Vattenfall
