Market pulp producer Rottneros has signed a long-term PPA, including guarantees of origin, off-taking energy from EnBW’s 116MW Målarberget wind farm in Sweden.
The agreement is for a period of 8.5 years starting in 2025.
The partnership represents a further step for Rottneros in its efforts to reduce both the environmental impact of its operations and its dependence on the volatile and uncertain electricity market.
Rottneros’ goal is to have switched to fossil-free production by 2030 in accordance with Scope 1 and 2 of the Greenhouse Gas Protocol (GHG).
The emissions resulting from Rottneros’ activities come mainly from external electricity purchases, which are also the company’s third largest variable cost factor.
Long-term PPAs not only help Rottneros achieve its climate goals, but are also part of the company’s active efforts to reduce its dependence on electricity price fluctuations in the long term.
Carl Johannessen, who works in the trading division of EnBW, said: “We are pleased to be able to play a role in the energy transition of large industrial companies with the help of PPAs.
“Through PPAs, we effectively connect electricity generation from renewable energy sources with the energy needs of our major customers.
“Our investment in the Målarberget wind farm underlines our strategic approach to the use of renewable energy sources.
“We see this not only as a transaction, but as an integral part of our business landscape, balancing the dynamics between supply and demand.
“PPAs are central to us. They meet the needs of buyers and project developers and also contribute to climate protection.
“It’s about striking a balance between the needs of the market on the one hand and the urgent need for sustainability on the other.”
In 2019, EnBW concluded the first PPA of its kind in Germany with Energiekontor, making it a pioneer in the field of power purchase agreements.
PPAs have established themselves as a central instrument of the energy transition.