German companies in renewable energy deals

Lanxess and Evonik have separately signed power purchase agreements (PPAs) with energy companies Engie and EnBW respectively, under which they will increase the renewable share of their electricity needs in the coming years. The former’s PPA will see 1,400 GWh supplied to seven sites from 17 wind farms and four solar parks in Germany. Meanwhile the latter is taking an additional 50 MW from EnBW’s planned He Dreiht offshore wind farm in the North Sea over the next 15 years, in addition to 100 MW it signed to take last November.

Lanxess' deal covers for five sites in Germany (Bergkamen, Bitterfeld, Brilon, Brunsbuettel and Mannheim) and two in Belgium (Lillo and Kallo) until the end of 2025. More than half of it will be covered by corporate PPAs with guarantees of origin for green power. This will reduce its carbon footprint by 33,000 tonnes/year. The company aims to be become climate-neutral in Scope 1 and 2 emissions by 2040 and for Scope 3 by 2050. Among other things, this involves switching its global power supply completely to renewable energies within the next decade.

Evonik said that its two recent deals will cover more than a third of its power requirements in Europe via this deal from 2026 onwards, taking the amount of electricity it sources from renewables worldwide from 27% to 50%. As a result it will reduce Scope 2 emissions by about 150,000 tonnes/year. The He Dreiht wind farm will be built about 90 km northwest of Borkum and around 110 west of Helgoland. It is scheduled to enter operation at the end of 2025. The investment is not state-funded and will rely on sufficient PPAs from industrial buyers go to ahead.