Axpo and Borealis sign two new long-term wind PPAs

17 February 2024

Axpo and Borealis, a leading global provider of sustainable polyolefins solutions, have joined forces once again to sign their fourth and fifth power purchase agreements (PPAs), it was announced today. The ten-year deals in Sweden and Belgium were signed in 2023, and follow three earlier long-term agreements in 2023, 2022 and 2021.

In January 2024, Axpo began the supply of 125 GWh of renewable energy a year to Borealis facilities in Stenungsund, Sweden. Under a ten-year agreement, green electricity will be provided by the onshore wind farm Lake Wind AB, in Habo, Sweden, owned by an infrastructure fund managed by Vauban Infrastructure Partners.

At the same time, Axpo commenced delivery of 70 GWh a year of wind-generated power to Borealis sites in Belgium. This renewable energy is sourced from wind turbines located on the left bank of the Port of Antwerp, surrounding the Borealis Kallo site, and owned by Wind aan de Stroom.

Axpo Head of Trading and Sales, Domenico De Luca, said: “We’re delighted to continue to partner with Borealis. Thanks to Axpo’s decade-long experience managing a sizable renewable energy portfolio, we can offer tailored energy solutions for large pan-EU organisations across multiple countries in what has become a new trend across energy markets. Power purchase agreements are proving key to advancing the energy transition and we’re pleased to work with companies like Borealis who are committed to securing a sustainable future.”

Borealis Executive Vice President Base Chemicals & Operations Wolfram Krenn states: "We are thrilled to announce these additional two major Power Purchase Agreements with Axpo, reinforcing our commitment to driving the energy transition despite market challenges. Our long-term partnership signifies our dedication to re-inventing essentials for sustainable living, accelerating our journey towards ensuring all electricity for our operations comes from renewable sources by the end of this decade."

Furthermore, Borealis is making significant strides towards its objective of sourcing 100% of electricity for its Polyolefins and Base Chemicals business units from renewable sources by 2030. The recently established PPAs with Axpo are expected to lead to a substantial reduction of approximately 14.955 metric tons of annual Scope 2 emissions (indirect greenhouse gas emissions resulting from the purchase or acquisition of electricity, steam, heat, and cooling).1 Over the ten-year PPA period at Borealis' operations in Sweden and Belgium, this equates to a noteworthy decrease of 149.550 metric tons in Scope 2 emissions, showcasing the company's commitment to environmental sustainability.