Borealis and Vattenfall forge landmark renewable energy partnership in Sweden

SWEDEN – Borealis and Vattenfall have finalized their inaugural long-term renewable hydropower purchase agreement (PPA).

As part of the agreement, Vattenfall will supply Borealis with a total of 175 GWh of renewable electricity annually for the next decade, sourced from its hydropower plants along the Lule River in Sweden to power Borealis’ operations in Stenungsund.

Owing to the Vattenfall collaboration and nine other PPAs inked with various partners, Borealis has surpassed its 2025 interim target of securing 40% of the electricity needed for its Polyolefins and Base Chemicals operations from renewable sources.

Wolfram Krenn, Executive Vice President for Base Chemicals & Operations at Borealis, emphasizes the significance of this collaboration in advancing Borealis’ Energy & Climate targets and dedication to sustainable living essentials.

This long-term partnership represents a significant milestone for Borealis, exceeding the critical 40% renewable electricity threshold well ahead of schedule.

The alliance is expected to lead to a substantial reduction of approximately 6,800 metric tonnes per year in Borealis’ Scope 2 emissions at its Stenungsund facility.

Over the ten-year duration of the PPA, this translates to a cumulative reduction of 68,250 metric tons of Scope 2 emissions.

Branislav Slavic, Head of Customers & Solutions Nordics at Vattenfall, highlights the energy provider’s commitment to becoming a leading provider of corporate PPAs and supporting customers in achieving their sustainability objectives.

The partnership with Borealis underscores Vattenfall’s dedication to providing energy solutions that align with Borealis’ ambitious sustainability targets, enabling Borealis to secure a long-term power deal based on fossil-free production.

This collaboration between Borealis and Vattenfall not only demonstrates their individual commitment to sustainability but also reflects a broader industry trend towards embracing renewable energy solutions.

In a recent development, Borealis and Axpo, Switzerland’s largest renewable energy producer and a global leader in solar and wind power trading, have once again collaborated by signing their fourth and fifth power purchase agreements (PPAs).

The ten-year deals in Sweden and Belgium were signed in 2023 and follow three earlier long-term agreements with Axpo.

Starting January 2024, Axpo has commenced supplying 125 GWh per year of wind energy to Borealis facilities in Stenungsund, Sweden.

This renewable electricity, sourced from the onshore wind farm Lake Wind AB in Habo, Sweden, owned by an infrastructure fund managed by Vauban Infrastructure Partners, is part of the Sweden PPA.

Simultaneously, Axpo has begun delivering 70 GWh per year of wind power to Borealis sites in Belgium for the next decade.

This renewable energy originates from wind turbines located on the left bank of the Port of Antwerp, surrounding the Borealis Kallo site and owned by another entity.

These agreements mark significant progress towards Borealis’ goal of sourcing 100% of electricity for its Polyolefins and Base Chemicals units from renewable sources by 2030.

The newly established PPAs with Axpo are expected to result in a substantial reduction of approximately 14,955 metric tonnes of annual Scope 2 emissions, indicative of the company’s commitment to environmental sustainability.

Over the ten-year PPA period in Sweden and Belgium, this translates to a noteworthy decrease of 149,550 metric tonnes in Scope 2 emissions, underscoring Borealis’ dedication to a sustainable future.

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on LinkedIn and subscribe to our YouTube channel.