Vattenfall signs 1.5 TWh per annum power supply and management deal with AkzoNobel
Sweden-headed energy utility major Vattenfall has announced that it via its Dutch subsidiary Nuon will supply 1.5 TWh of electricity per annum to AkzoNobel in the Netherlands. According to a new agreement, Vattenfall will also provide support in managing fluctuations in energy use, resulting in improved cost control and an increased share in renewable energy use for AkzoNobel.
According to a statement, AkzoNobel will use its own flexibility – both in chemical plants and electricity generation – to manage fluctuations in energy use and generation to prevent imbalance and optimize costs. The company will also offer a demand-side response to an increasing share of intermittent renewable generation. Vattenfall will in addition offer access to the energy market, through its trading operations.
The aim of this partnership is to provide Vattenfall’s resources, with solid experience and expertise from acting on the energy market. Hence, we support AkzoNobel in creating competitive value by offering its available flexibility to the power market. We will provide professional guidance as well as enhance the skills of staff in planning and operations,” said Martijn Hagens, Vattenfall’s Senior Vice-President Customers & Solutions.
The partnership between Vattenfall, through its Dutch subsidiary Nuon, and AkzoNobel will support AkzoNobel take the next step in meeting its strategic and sustainability targets and reaching carbon neutrality by 2050. The new agreement concerns AkzoNobel’s chemical production sites in Delfzijl, Hengelo and Rotterdam.
This agreement is testimony to the expertise of Vattenfall as a partner in the energy transition and is consistent with our own Planet Possible sustainability strategy for efficient resource and energy use across the entire value chain. It also underlines our commitment to using more sustainable energy resources such as wind and solar power and gives us further momentum in our industry transition towards 100 percent carbon neutrality by 2050 said Knut Schwalenberg, Chairman of AkzoNobel Netherlands.
The set-up of the agreement is expandable to Germany, Denmark and Sweden for a portfolio-based approach to AkzoNobel’s energy procurement. Vattenfall has already been supplying EPD (Environmental Product Declaration) electricity to seven of AkzoNobel’s plants in Sweden and Finland since January 1, 2017. The agreement in the Nordics has an annual volume of about 1.25 TWh.