ENGIE and BASF subscribe power purchase agreement for renewable energy in Europe
Long- term PPA over 25 times
Total volume amounts over to20.7 terawatt hours
Renewable energy for low- emigration chemical product
ENGIE and BASF have inked a 25- time Power Purchase Agreement (PPA) for renewable energy in Europe. Under the PPA, effective as of January 1, 2022, ENGIE will give BASF with over to20.7 terawatt hours of renewable electricity in total throughout the term of the agreement.
Multiple European BASF spots will be supplied from ENGIE’s renewable design portfolio in Europe. The electricity will originally come from onshore wind granges located in colorful spots throughout the Spanish home in which ENGIE acts as equity investor or energy director. In the further course, ENGIE will have the option to either deliver power from being Spanish means or from unborn onshore and offshore wind granges.
“ BASF and ENGIE have been working together for numerous times. With this agreement we take a significant coming step on our path to climate-neutral chemical product. One important switch is replacing reactionary- grounded electricity with renewable electricity. This long- term contract with a crucial player in the European energy request secures substantial volumes of electricity from renewable sources for BASF. At the same time, it makes BASF an enabler for green energy driving fresh systems for renewable power
.in Europe,” saidDr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE.
Catherine MacGregor, CEO of ENGIE, said “ Thanks to our large, different and growing portfolio of renewable energy product, ENGIE is suitable to give carbon-free energy and electricity to its guests, including leading transnational companies similar as BASF. It demonstrates our capability to accompany them on their own path to carbon impartiality, an achievement we’re veritably proud of. This contract will deliver steady profitable and environmental value in the long run for both mates.”
BloombergNEF, the reference in terms of strategic analysis in the field of energy transition, ranks ENGIE first position at the end of July 2021 for inked commercial PPAs. At the end of September, ENGIE has formerly inked new Commercial Power Purchase Agreements for a total volume of1.9 gigawatts since the morning of the time (versus1.5 gigawatts for the full time 2020), to give major artificial and tech companies with renewable power.
This agreement is completely aligned with ENGIE’s long- term strategy to develop renewables and BASF’s climate protection pretensions. BASF aims to reduce its hothouse gas emigrations by 25 by the time 2030 compared with 2018 and to achieve net-zero emigrations by 2050.
From 2030 onwards, BASF wants to apply low- emigration technologies, similar as CO2-free styles for the product of hydrogen and electrically heated brume crackers, which will significantly increase BASF’s demand of renewable power.