Borealis secures 175 GWh of hydropower annually for Swedish ops

Austrian polyolefins producer Borealis AG has agreed to procure 175 GWh of hydropower per year in Sweden from local state-owned utility Vattenfall AB.

The companies have signed their first long-term hydropower purchase agreement (PPA) which came into force in January and has a 10-year term, according to a statement published on Wednesday.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

The green energy is sourced from Vattenfall’s hydropower plants along the Lule River in northern Sweden and is used for Borealis’ operations in the coastal municipality of Stenungsund.

The PPA is expected to reduce Borealis' Scope 2 emissions by about 6,800 metric tonnes per year.

“This long-term collaboration carries significant importance, catapulting Borealis beyond the critical milestone of securing over 40 per cent of our electricity for our Polyolefins and Base Chemicals operations from renewable sources well ahead of time,” said Wolfram Krenn, executive vice president of base chemicals and operations at Borealis.

Last month, the Austrian firm inked two PPAs to buy electricity from Belgian and Swedish onshore wind parks owned by Swiss power producer and energy trader Axpo Holding AG.