LANXESS and ENGIE have signed power supply agreements for a total of 1,400 GWh for sites in Germany and Belgium, with over half of the agreements covered by corporate power purchase agreements (cPPAs) for green power. The cPPAs will run from January 2023 to the end of 2025, and the electricity for these agreements will be sourced from 17 wind farms and four solar parks in Germany. This mix of different technologies and locations will enable generation from renewable energy sources to be best adapted to LANXESS’ consumption profile. The partners expect renewable energies to account for 50% of the total electricity supplied, which will reduce LANXESS’ carbon footprint by 33,000 metric tons per year.
The supply of electricity to the cPPAs will be directed to five LANXESS sites in Germany: Bergkamen, Bitterfeld, Brilon, Brunsbüttel, and Mannheim, as well as two LANXESS sites in Lillo and Kallo in the Antwerp port area in Belgium. The new supply agreement is part of LANXESS’ plan to become climate-neutral in production (Scope 1) and energy sources (Scope 2) by 2040, and to switch its global power supply entirely to renewable energies within the next ten years. LANXESS also announced its intention in August 2022 to make its entire upstream and downstream value chain climate-neutral by 2050 (Scope 3).
According to Rolf Kettner, Head of Energy Procurement at LANXESS, green electricity in production makes the company’s products more sustainable, and therefore, more attractive to its customers. Meanwhile, ENGIE’s Senior Originator, Julia Schlafmann, expressed her pleasure in supporting LANXESS in Germany and Belgium on its path to climate neutrality with a green power supply contract. ENGIE is one of the leading providers of PPAs worldwide, and it is one of the top three portfolio owners of post-subsidy parks, with a volume of over two terawatt hours. The combination of wind and solar farms in Germany enables ENGIE to provide more green power to its customers.