Borealis signs 10-year PPA with Gasum to supply power from Stena Renewable
Borealis AB the Swedish subsidiary of Austria-headed olefins major Borealis AG has signed a long-term power purchase agreement (PPA) with the Finnish energy company Gasum Oy to source renewable electricity from an onshore wind farm located around 250 km from Borealis operations in Stenungsund. Over the next decade, Borealis will procure the output – estimated at 2 TWh in total – from the Kronoberget wind farm, which is owned and operated by Swedish energy company Stena Renewable AB.
Borealis provides innovative solutions in the fields of polyolefins, base chemicals, and fertilizers. The company has 6 900 employees in over 120 countries, and it is the only polyethylene producer operating in Sweden. the deal will secure a supply of renewable energy for Borealis for the next ten years and estimated to reduce indirect carbon dioxide (CO2) emissions (scope 2) at the Stenungsund plant by approximately 10 000 tonnes per annum
Borealis is determined to reach ambitious goals set in our focus area of Energy & Climate. Thanks to the long-term PPA with Gasum and Stena Renewable, sourcing 50 percent of the energy consumed in our operations from renewable sources by 2030 has now become even more tangible. We are pleased to have signed yet another PPA that allows us to maintain competitiveness in the marketplace while bringing about a carbon-neutral future. This is what we mean by re-inventing for more sustainable living, said Martijn Van Koten, EVP Base Chemicals and Operations, Borealis.
A landmark deal for Gasum and Stena Renewable
According to Gasum, the agreement is a breakthrough for the company, strengthening its role in the sustainable energy business in Sweden. As a leading producer and supplier of biogas, and as a processor of biodegradable waste in the Nordic region, Gasum offers cleaner solutions to traditional fossil fuel-based energy sources.
By helping its customers successfully navigate the energy transition to clean energy, it is accelerating the shift to carbon neutrality. The partnership is evidence of its strategy to increase the supply of cleaner energy across the Nordics, especially as both Borealis and Stena Renewable have ambitious sustainability targets for the future.
Wind power will play a crucial role in the transition to a cleaner energy future. We are pleased to have signed this long-term PPA for the supply of clean energy from Stena Renewable to Borealis’ operations in Stenungsund. This partnership aligns perfectly with our overarching aim to provide the most comprehensive services available on the energy market to meet growing energy needs, while at the same time mitigating global warming, said Anders Malm, SVP Portfolio Management and Trading, Gasum.
A major developer of wind power in Sweden, Stena Renewable has 115 wind turbines in operation and another 90 under construction. Located in south-central, the Kronoberget wind park was commissioned in December 2019 and has 16 turbines with a total installed capacity of 60.8 MW.
Generating approximately 200 GWh of electricity annually, the supply of renewable electricity to Borealis in Stenungsund began on January 1, 2021.
It has long been our goal to sign a PPA of this kind with a major industrial player like Borealis. We are delighted and impressed by the long-term commitment Borealis has made to reduce its carbon footprint. This agreement ensures that Borealis will have access to clean and cost-efficient energy for its Stenungsund operations for a good while to come, commented Peter Zachrisson, CEO of Stena Renewable.