Vattenfall and Borealis Forge Renewable Energy Partnership to Drive Decarbonization

Vattenfall and Borealis Forge Renewable Energy Partnership to Drive Decarbonization

(IN BRIEF) Vattenfall and Borealis have entered into a groundbreaking long-term renewable hydropower purchase agreement (PPA) aimed at bolstering sustainability efforts. Starting January 2024, Vattenfall commenced supplying Borealis’ Stenungsund operations with 175 GWh per year of renewable energy sourced from its hydropower plants in northern Sweden. This collaboration underscores both companies’ commitment to reducing carbon footprints, with the anticipated reduction of 6,800 metric tons per year in Borealis’ Scope 2 emissions from its Stenungsund facility. The agreement marks a significant stride towards Borealis’ target of achieving 100 percent renewable electricity in its key business segments by 2030, exemplifying a joint dedication to sustainable practices and decarbonization.

(PRESS RELEASE) STOCKHOLM, 7-Mar-2024 — /EuropaWire/ — Vattenfall and Borealis, one of the world’s leading providers of advanced and sustainable polyolefins solutions and a European front-runner in polyolefins recycling, have signed their first long-term renewable hydropower purchase agreement (PPA). In January 2024 Vattenfall began supplying Borealis’ operations in Stenungsund with 175 GWh per year of renewable energy from Vattenfall’s hydropower plants along the Lule River in northern Sweden.

By supporting customers in achieving their sustainability goals, Vattenfall is committed to building a future where everyone can choose fossil free ways to move, make and live. In December 2023, Vattenfall and Borealis signed their first long-term purchase agreement (PPA) for hydropower, set to run for ten years.

“We strive to support our customers in achieving their sustainability goals so we are pleased about the cooperation with Borealis and the opportunity to provide energy solutions that meet Borealis’ ambitious sustainability targets. The agreement makes it possible for Borealis to have a long-term power deal based on fossil free production. The partnership also underlines our ambition to become a leading provider of corporate PPAs”, says Branislav Slavic, Head of Customers & Solutions Nordics Vattenfall.

This development represents a notable move towards decarbonisation, as the renewable electricity generated through the new PPA is anticipated to result in a reduction of approximately 6,800 metric tons per year in Borealis’ Scope 2 emissions* from its Stenungsund1 facility. Over the course of the ten-year PPA, this will amount to a total of 68,250 metric tonnes of prevented Scope 2 emissions.

“By partnering with Vattenfall for this ten-year Power Purchase Agreement, we are taking a major step towards achieving our ambitious Energy & Climate targets, showcasing our dedication to re-inventing essentials for sustainable living. This long-term collaboration carries significant importance, catapulting Borealis beyond the critical milestone of securing over 40 per cent of our electricity for our Polyolefins and Base Chemicals operations from renewable sources well ahead of time,” says Wolfram Krenn, Executive Vice President Base Chemicals & Operations.

Furthermore, it moves Borealis one step closer to utilising 100 percent renewable electricity in the production processes of these two key business segments by 2030.

*Scope 2 emissions: Greenhouse gas GHG emissions produced on-site through purchased or otherwise obtained electricity, as well as emissions stemming from steam, heat, and cooling processes.

[1] Calculated following Greenhouse Gas Protocol, Market based approach with residual emission factor of 2022 by AIB (Association of Issuing Bodies)

About Borealis
Borealis is one of the world’s leading providers of advanced and sustainable polyolefin solutions. In Europe, Borealis is also an innovative leader in polyolefins recycling and a major producer of base chemicals. We leverage our polymer expertise and decades of experience to offer value-adding, innovative and circular material solutions for key industries such as consumer products, energy, healthcare, infrastructure and mobility.
With operations in over 120 countries and head offices in Vienna, Austria, Borealis employs around 6,000 people. In 2022, we generated a net profit of EUR 2.1 billion. OMV, the Austria-based international energy, fuels & feedstock and chemicals & materials company, owns 75% of our shares. The Abu Dhabi National Oil Company (ADNOC), based in the United Arab Emirates (UAE), owns the remaining 25%.
In re-inventing essentials for sustainable living, we build on our commitment to safety, our people, innovation and technology, and performance excellence. We are accelerating the transformation to a circular economy of polyolefins and expanding our geographical footprint to better serve our customers around the globe. Our operations are augmented by two important joint ventures: Borouge (with ADNOC, headquartered in the UAE); and Baystar™ (with TotalEnergies, based in the US).  www.borealisgroup.com  | www.borealiseverminds.com

Media Contacts:

Heidi Stenström
+46 8-739 50 10
press@vattenfall.com

Virginia Wieser, Lena Lehner, Karin Schober
Borealis Group Media Desk
+43 1 22 400 899 (Vienna, Austria)
e-mail: media@borealisgroup.com

SOURCE: Vattenfall AB