Iberdrola has signed a power purchase agreement (PPA) with Mercedes-Benz to deliver electricity from its new German offshore wind farm Windanker in the Baltic Sea from 2027.
The supply agreement secures the Mercedes-Benz Group a share of more than 140MW of the site’s planned total capacity of up to 315MW.
The contract is one of the largest PPAs for green energy in the automotive industry in Europe.
Iberdrola Deutschland already operates 350MW Wikinger wind farm and is building 476MW Baltic Eagle in the Baltic Sea.
Felipe Montero, CEO of Iberdrola Deutschland, said: “The agreement with Mercedes-Benz Group AG is an important step that allows Iberdrola Deutschland to expand partnerships with industrial and commercial customers that are willing to reduce their carbon footprint and transition towards a green economy.
“It is through cooperations like these that we can develop large-scale renewable energy projects successfully and on market-based mechanisms.”
Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, Production and Supply Chain Management said: “By partnering with Iberdrola, we are taking an important step to further secure our green energy capacity for the future.
“We are thus underpinning our comprehensive claim to be a sustainable pioneer and at the same time our intention is to play an active role in shaping the energy transition.”
Mercedes-Benz will be the largest electricity offtaker from the Windanker offshore wind farm.
Iberdrola aims to collaborate with other key players in the German economy by providing renewable energy, market-based solutions to meet climate goals.
This includes the integration of PPAs into a modern electricity supply portfolio as well as the development of projects in the fields of hydrogen generation and trading.