Daimler and Statkraft have signed a renewable purchase power agreement (PPA) to use wind and solar energy to power factories used for the production of the Mercedes brand.
Mercedes Benz
This comes as a number of sectors, including automotive, are pushing a trend of decarbonisation in order to meet the often strict climate goals as laid out by various nations.
Read more: Anglo American and ENGIE explore South African hydrogen valley
Key industrial players are looking to reel in their carbon footprints through deals with renewables. Daimler has already signed agreements with wind farms in Poland and Germany.
This new deal will give them 100% renewable energy 24/7 as it brings wind together with solar and with hydro capacity in Norway providing back-up.
The wind power to be used in the factories will come from an installed capacity of roughly 200 wind turbines at various farms across Germany.
The company revealed all the farms used no longer receive public funding and these deals work to keep these farms operational and prevent them from falling into disuse.
The two parties hope this trifecta of renewable sources will help prove to other industry players the role renewables can play in the manufacturing sector.
The two parties have been signing renewable PPAs in Germany since at least 2019 when they took on various wind farms in the country.
Governments around the world should keep supplying these PPA deals, the company said, adding they are a great way to support "market-driven" demand for renewable energy.
The company also mentioned potential barriers for adoption, such as "penalisation" for firms signing PPA agreement - potentially levies or taxes - which supposedly disincentivise the transition.
It also reports some Governments withhold the necessary guarantees of origin that underpin the PPAs by providing the traceability of renewable energy.
Read more: Volkswagen sues ex-CEOs for breaching "duty of care" over Dieselgate
WindEurope's CEO Giles Dickson said the deal was a win-win for all involved as Daimler gets its clean energy and the industry moves one step closer to decarbonisation.
He added: "[With this deal] 24 wind farms get a new customer and can keep running free of public support. The wind is combined with solar and hydro to give 24/7 stable power. And Europe gets a perfect model for how cheap and reliable renewables can decarbonise the economy.”
Back to Homepage
Back to Energy & Utilities
Back to Transportation