PowerCo Secures Green Energy for Salzgitter Cell Factory
PowerCo SE, a key player in the battery manufacturing industry, has announced long-term agreements with green energy producers Alterric and EnviTec Biogas AG.
The agreements, set to begin in 2025, will supply the company's Salzgitter cell factory in Germany with approximately 240-gigawatt hours of wind energy annually from Alterric and 65-gigawatt hours of solar energy from EnviTec Biogas AG.
Over a 10-year span, the partnership will generate a combined total of 3 terawatt hours (TWh) of renewable energy, significantly advancing PowerCo's sustainability goals.
Setting new standards for sustainability
PowerCo SE, a Volkswagen Group subsidiary, is focused on sustainable battery production and committed to leveraging renewable energy to reduce carbon emissions.
Jörg Teichmann, Chief Procurement Officer of PowerCo SE, emphasises the company's dedication: "We want to build a robust, European battery supply chain that also sets high standards in terms of sustainability. With these purchase agreements, we ensure green electricity powers our cell factory while contributing to the growth of renewable energy in Europe."
The initiative's projection is that it will save approximately 115,000 tons of CO2 annually at the Salzgitter plant compared to using the German electricity grid's 2023 energy mix.
Alterric, one of Central Europe's largest onshore green energy producers, will provide PowerCo with 2.4 terawatt hours of wind energy over the next decade. The energy will be sourced from four wind power projects in Lower Saxony, Germany.
Dr Frank May, Managing Director of Alterric, highlights the importance of the Power Purchase Agreement (PPA): "This off-take agreement demonstrates the significance of the PPA model for high-quality electricity supply in the industry. Direct agreements ensure quality and provide financial stability to new renewable energy projects."
Alterric's portfolio includes more than 2,400 megawatts of installed wind and hybrid park capacity, emphasising its position as a leader in green energy.
EnviTec Biogas AG, a major biogas producer in Germany, is expanding into solar power. Under the agreement, the company will deliver 650 gigawatt hours of solar electricity over ten years from a new solar park in Buckow, Brandenburg.
Olaf von Lehmden, CEO of EnviTec Biogas AG, shares the company's broader mission: "The energy transition is a Herculean task that can only be achieved through collective effort and diverse renewable energy sources. We are investing widely in green energy production to support this critical transition."
Advancing green battery production
PowerCo SE is actively establishing itself as a global battery cell producer, focusing on sustainability. Alongside the Salzgitter factory, it is developing two additional facilities in Valencia, Spain and St. Thomas, Canada, aiming for a total production capacity of up to 200 gigawatt hours annually.
The Salzgitter facility's reliance on renewable energy is a testament to PowerCo's commitment to reducing its operations' environmental impact. Using PPAs, PowerCo ensures long-term income stability for its energy partners, fostering further investment in renewable projects.
Through its collaboration with Alterric and EnviTec Biogas AG, PowerCo SE supports sustainable battery manufacturing practices. These agreements not only power the Salzgitter facility but also contribute to the broader adoption of renewable energy across Europe.
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