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Engie and Lanxess sign green-electricity supply deal

| By Mary Bailey

Lanxess AG (Cologne, Germany) and energy company Engie S.A. (La Défense, Courbevoie, France) have concluded power full supply agreements for a total of 1,400 GWh for sites in Germany and Belgium. More than half will be covered by corporate power purchase agreements (cPPAs) with guarantees of origin for green power. The cPPAs run from January 2023 to the end of 2025.

The electricity for the cPPAs will be sourced from seventeen wind farms and four solar parks in Germany. By combining different technologies and locations, generation from renewable energy sources can be best adapted to LANXESS’ consumption profile. For example, the partners expect renewable energies to account for 50 percent of the total electricity supplied. This will reduce LANXESS’ carbon footprint by 33,000 metric tons per year. By comparison, the CO2 footprint per person per year in Germany is around eleven metric tons. The electricity will be supplied to five LANXESS sites in Germany: Bergkamen, Bitterfeld, Brilon, Brunsbüttel and Mannheim. In Belgium, the electricity goes to the two LANXESS sites in Lillo and Kallo in the Antwerp port area.

“Green electricity in our production also makes our products more sustainable – and therefore more attractive to our customers,” says Rolf Kettner, Head of Energy Procurement at LANXESS. The new supply agreement pays into LANXESS’ plan to become climate-neutral in production (Scope 1) and energy sources (Scope 2) by 2040. Among other things, the specialty chemicals group therefore plans to switch its global power supply completely to renewable energies within the next decade. In August 2022, LANXESS also announced its intention to make its entire upstream and downstream value chain climate-neutral by 2050 (Scope 3).

“We are pleased to now also support LANXESS in Germany and Belgium on its path to climate neutrality with a green power supply contract. By combining wind and solar farms, we can make green power even more available to our customer,” says Julia Schlafmann, Senior Originator at ENGIE. ENGIE is one of the leading providers of PPAs worldwide and is one of the top three portfolio owners of post subsidy parks with a volume of more than two terawatt hours.