Tailored PPA and Portfolio Optimization
Renewable energy producer Tion Renewables and Nobian have signed a Corporate Power Purchase Agreement (PPA). Usually, PPAs are signed for new plants with delivery periods of 10 to 15 years to ensure long-term price security and financing. With this agreement, however, Tion will supply the electricity from its operational portfolio to Nobian for a shorter period of around three years.
Nobian’s first PPA in Germany with Tion Renewables
Nobian’s first PPA in Germany with Tion Renewables marks another milestone in its journey to achieve zero-carbon with 100% renewable energy by 2040. Johan Hospers, Director Energy at Nobian, said: ”This agreement underlines our commitment to procure electricity in the countries where we operate, strengthening our sustainability efforts across Europe. The volume will be allocated to Nobian’s electrolysis plant in Bitterfeld in eastern Germany, where it covers all electricity consumption during periods of high wind. Annually this is approximately 20–25% of the total energy consumption of that plant, expectedly saving scope 2 emissions by 20,000 tCO2 per year.”
Nobian is keen to pursue additional PPAs in Germany, the Netherlands, and Denmark over the coming years to expand its renewable energy portfolio. This will help to generate low carbon products by reducing CO2 emissions in its production processes for salt, chlorine, caustic soda, and hydrogen.
“After the successful conclusion of PPAs in the Netherlands and Finland, this new partnership with Tion Renewables in Germany exemplifies Nobian’s commitment to the transition to a sustainable energy supply”, Hospers added.
Partnerships to empower the energy transition
“In our company history of only five years, we already managed to realize customized short- and long-term Corporate PPAs with leading European corporates. The decisive factor to our success is that we not only steadily grow our portfolio, we also continuously diversify and thus optimize it – such as by structuring the PPA for Nobian from our operational wind portfolio, which allows us to supply Nobian with green electricity in eastern Germany,” David Willemsen, Chief Commercial Officer of Tion Renewables Group, outlined. “It needs trusted and reliable partners to empower the energy transition. In Nobian, we have found one that we also see by our side for future projects.”
Greenhouse gas emissions attributable to companies are categorized into Scope 1, Scope 2 and Scope 3 emissions. The Scope 2 emissions disclosed here comprise all indirect emissions from energy that a company acquires or purchases. The indication of the annual cutting of 20,000 tCO2 emissions is based on the assumption that the power replaces power produced with the average electricity grid factor in Germany of 0.474 kg CO2/kWh.
