Borealis and Vattenfall sign their first long-term hydropower PPA to source renewable power in Sweden

• New power purchase agreement (PPA) to deliver renewable energy generated by Vattenfall hydropower plants to Borealis site in Stenungsund, Sweden
• Borealis achieves ambitious goal of powering 40% of its Polyolefins and Base Chemicals operations with renewable electricity ahead of schedule

Borealis, one of the world’s leading providers of advanced and sustainable polyolefins solutions and a European front-runner in polyolefins recycling, and Vattenfall, one of Europe’s largest producers and retailers of electricity and heat, have signed their first long-term renewable hydropower purchase agreement (PPA) in December 2023. Starting in January 2024, Vattenfall has begun to supply Borealis’ operations in Stenungsund with a total of 175 GWh of renewable energy per year from its hydropower plants located along the Lule River in Sweden over the course of the next ten years.

Thanks to this newly established PPA with Vattenfall and nine other PPAs signed with different partners since 2021, Borealis has already achieved its 2025 intermediate target of sourcing 40% of the electricity needed for its Polyolefins and Base Chemicals operations from renewable sources well ahead of time.

Furthermore, it moves Borealis one step closer to utilizing 100% renewable electricity in the production processes of these two key business segments by 2030.

This development represents a notable move towards decarbonization, as the renewable electricity generated through the new PPA is anticipated to result in a reduction of approximately 6,800 metric tons per year in Borealis' Scope 2 emissions at its Stenungsund facility.[1] Over the course of the ten-year PPA, this amounts to a total reduction of 68,250 metric tons of Scope 2 emissions. Scope 2 emissions are greenhouse gas GHG emissions produced on-site through purchased or otherwise obtained electricity, as well as emissions stemming from steam, heat, and cooling processes.

"By partnering with Vattenfall in the signing of this ten-year Power Purchase Agreement, we are taking a major step towards achieving our ambitious Energy & Climate targets, showcasing our dedication to re-inventing essentials for sustainable living. This long-term collaboration carries significant importance, catapulting Borealis beyond the critical milestone of securing over 40% of our electricity for our operations from renewable sources well ahead of time,” says Wolfram Krenn, Executive Vice President Base Chemicals & Operations.

"We strive to support our customers in achieving their sustainability goals, so we are pleased about the cooperation with Borealis and the opportunity to provide energy solutions that meet Borealis’ ambitious sustainability targets. The agreement makes it possible for Borealis to have a long-term power deal based on fossil free production. The partnership also underlines our ambition to become a leading provider of corporate PPAs,” confirms Branislav Slavic, Head of Customers & Solutions Nordics Vattenfall.

[1] Calculated following Greenhouse Gas Protocol, Market based approach with residual emission factor of 2022 by AIB (Association of Issuing Bodies)

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This media release is also available in German and Swedish language.

Media contacts:

Borealis Group Media Desk
Virginia Wieser, Lena Lehner, Karin Schober
Tel: +43 1 22 400 899 (Vienna, Austria)
E-mail: media@borealisgroup.com

Press and media - Vattenfall
Heidi Stenström
Mob: +46 70 611 81 92
E-mail: heidi.stenstrom@vattenfall.com