Axpo and German industrial gas specialist Messer have concluded a long-term power purchase agreement (PPA), it was announced today. From 1 January 2024, Axpo will supply two Messer facilities in Germany with electricity produced by Südwerk solar plants based in Bavaria.
Under the long-year agreement, Axpo will act as intermediary between Messer and Südwerk, purchasing all electricity generated by two solar farms located in Nabburg and Hagelstadt in Bavaria and supplying it to Messer’s facilities in Siegen and Speyer. This will enable the manufacturer to save around 2,850 tonnes of CO2 emissions a year at these plants, while the PPA also secures a long-term revenue stream for Südwerk.
Axpo Germany Managing Director Johannes Pretel said: “The direct delivery of power from renewable plants to industrial customers can be challenging for a number of reasons. However, in structuring and assuming risks related to volume and energy balancing, Axpo can overcome these difficulties to offer a solution tailored to the needs of all participants in the agreement. Our extensive experience in full supply and tailor-made PPAs helps eliminate complexity and unpredictability for all parties. In this instance, we’re delighted to have such reliable partners as Messer and Südwerk.”
Messer Industriegase Managing Director Peter Laux said: “Messer is systematically pursuing the goal of further reducing our carbon footprint. Key levers for this are not only the ongoing modernisation and energy optimisation of our production facilities, but also the sustainable sourcing of energy. Axpo’s structured supply of green electricity with a clear link to Südwerk’s solar farms helps us achieve this goal for the Speyer and Siegen sites.”
Südwerk Group Managing Director Manuel Zeller Bosse said: “A partnership-based approach was key for us when we started using PPAs for the long-term marketing of our plants. Our company’s dynamic development and the further expansion of our project pipeline will make price hedging outside the EEG remuneration framework increasingly important for us. Working with an experienced and professional partner like Axpo helps us here.”
In addition to the long-term power purchase agreement, the Südwerk Group and Axpo have also concluded a short-term three-year agreement for the development of four solar farms in Bavaria with an installed capacity of around 12,500 kWp. Over the term of the agreement, Axpo will receive around 40 GWh of solar power from the facilities.