Evonik to purchase more power from EnBW's German wind farm

By: Tom Russell 02/02/2023 EnBW

General Windfarms

Evonik has extended its cooperation with EnBW and signed a second Power Purchase Agreement (PPA) for the He Dreiht offshore wind farm.

A first PPA was concluded last year for the purchase of 100 MW. The second agreement adds a further 50 MW. As a result, the specialty chemicals company should be able to cover more than a third of its power requirements in Europe from 2026 onwards. The term of the second tranche is also 15 years.

“Extending the cooperation with EnBW is the next step on our way to significantly reducing our dependence on fossil fuels and their price fluctuations,” said Christian Kullmann, CEO of Evonik. Evonik announced the first tranche of the PPA with EnBW back in November. Further supply contracts for green electricity directly from the producer are currently in the planning stage.

"We are fully determined to increase the share of green electricity in our energy mix and thus further reduce greenhouse gas emissions,” added Kullmann.

“We are building the ‘He Dreiht’ wind farm with money raised on the market rather than through state funding. Long-term power purchase agreements are the right way for us to expand renewable capacity,” explained EnBW board member Georg Stamatelopoulos. “PPAs have established themselves as a key instrument in the energy transition. It is therefore all the more important that state intervention in the market does not represent any kind of permanent solution. This could have a negative impact on the willingness to invest and hamper the further expansion of renewable capacity. We are delighted to be able to help Evonik to reduce carbon emissions with another package of offshore wind energy. By doing so, we are gradually helping to decarbonize the industrial sector.

“Last year, we saw a significant increase in inquiries from medium-sized and large companies. This shows that there is considerable interest among companies in using PPAs to consistently pursue their own sustainability goals. It represents a significant contribution to the energy transition and we can only achieve it together.”

“At present, 27 percent of Evonik’s externally purchased electricity worldwide already comes from renewable sources. The two PPA tranches secured with EnBW will significantly increase this figure to around 50 percent,” said Thomas Wessel, the management board member responsible for sustainability at Evonik. “At the same time, the cooperation will reduce Evonik’s Scope 2 emissions, i.e., emissions attributable to externally purchased power, by 150,000 metric tons of CO2 per year.”

He Dreiht is being developed as a subsidy-free wind farm, and was awarded grid connection agreement in the German capacity auction held in April 2017. The 900 MW project will be build approximately 85 km north of the Borkum Island and 95 km to the west of the Helgoland Island. Its operation and maintenance will be conducted from EnBW's base in Emden. Full commissioning of the wind farm is expected in the second half of 2025. It will feature 64 wind turbines, each with a 15 MW capacity.

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