Borealis and Vattenfall forge renewable energy partnership in Sweden to fuel decarbonization
12 Mar 2024 --- Borealis and Vattenfall, one of Europe’s largest producers of electricity and heat, have sealed their inaugural long-term renewable hydropower purchase agreement (PPA). Vattenfall will channel a total of 175 GWh of renewable electricity annually to Borealis over the next decade, from its hydropower plants located along the Lule River in Sweden to power Borealis’ operations in Stenungsund.
Borealis has surpassed its 2025 interim target of sourcing 40% of the electricity required for its Polyolefins and Base Chemicals operations from renewable sources, owing to the Vattenfall collaboration and nine other PPAs inked with various partners.
“By partnering with Vattenfall in the signing of this ten-year PPA, we are taking a major step toward achieving our ambitious Energy & Climate targets, showcasing our dedication to reinventing essentials for sustainable living,” says Wolfram Krenn, executive vice president for Base Chemicals & Operations at Borealis.
“This long-term collaboration carries significant importance, catapulting Borealis beyond the critical milestone of securing over 40% of our electricity for our operations from renewable sources well ahead of time.”
The partnership is anticipated to result in a reduction of approximately 6,800 metric tons per year in Borealis’ Scope 2 emissions at its Stenungsund facility. Over the ten-year PPA tenure, this equates to a cumulative reduction of 68,250 metric tons of Scope 2 emissions.
Industry shift toward renewable
Branislav Slavic, head of Customers & Solutions Nordics at Vattenfall, says the partnership underlines the energy provider’s ambition to become a “leading provider of corporate PPAs.”
“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 allows Borealis to have a long-term power deal based on fossil-free production.”
The alliance also epitomizes a broader industry shift toward embracing renewable energy solutions.
In January, Tetra Pak partnered with Absolicon, a Swedish solar thermal company, to offer a standardized solution for industrial equipment powered by renewable thermal energy.
Lactalis and renewable heat supplier Newheat also joined forces to open “the largest solar thermal power plant in France,” which is expected to provide heat to Lactalis’ dairy factory for the next 25 years.
Traditionally viewed for functionality and aesthetics, packaging’s environmental impact is now at the forefront of the industry. Companies are redefining practices to align with sustainability goals, emphasizing eco-friendly materials, innovative designs and improved recycling. We spoke to DS Smith, Mondi and Metsä Board about how the packaging industry is tackling climate change.
By Radhika Sikaria
