Iberdrola and Holcim Sign Baltic Eagle Power Deal
Spanish energy company Iberdrola has signed a power purchase agreement (PPA) with Switzerland-headquartered Holcim for electricity generated at the Baltic Eagle offshore wind farm currently under construction in the German Baltic Sea.
The newly agreed PPA will see Iberdrola provide Holcim with 250 GWh of renewable energy per year from its Baltic Eagle project which should help to accelerate Holcim’s net-zero journey in Germany, where it aims to expand the use of renewable energy in its operations to over 80 per cent by 2030.
The Baltic Eagle offshore wind farm is currently under construction in the Baltic Sea with the first monopiles already in place at the construction site.
With a production capacity of 476 MW, Iberdrola’s Baltic Eagle offshore wind farm is expected to supply about 475,000 homes with renewable energy while reducing CO2 emissions by approximately 800,000 tonnes per year.
Located northeast of the Rügen island off the Pomeranian coast, the project is expected to be completed by 2024.
In March, Amazon and Iberdrola inked PPA with electricity to be sourced from the Baltic Eagle project.
A month later, Iberdrola signed another PPA with Salzgitter Flachstahl, part of the Salzgitter Group, for electricity generated at the same offshore wind farm.
As part of a wider agreement with Holcim, the two companies have established a working group to analyse the potential of delivering a broad range of further sustainability-linked projects in Europe and potentially other continents.
The proposals being developed include potential additional PPAs to decarbonise operations, as well as analysing suitable locations to develop on-site renewables facilities at operational plants owned by Holcim, from solar PV to green hydrogen.
“Our agreement will see clean energy from offshore wind supporting Holcim operations immediately, and both companies want to expand our sustainable partnership much further in the weeks, months, and years ahead”, said Aitor Moso, Director of Iberdrola’s Retail Business.
Iberdrola will also help Holcim to analyse projects that could help to increase the electrification of existing industrial processes and boost electric mobility solutions.
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