Mercedes-Benz, one of the leading automobile manufacturers, has taken a significant step towards sustainable energy by signing a power purchase agreement (PPA) with Spain’s Iberdrola. Under this agreement, the German automaker will purchase 140 megawatts (MW) of clean energy from an offshore wind farm in the Baltic Sea. The deal is considered one of the largest PPAs for clean energy in Europe, making a substantial contribution to Mercedes’ target of increasing the use of renewable energy to account for 70% of its overall energy needs at production sites.
The offshore wind farm, Windanker, is a 300 MW project consisting of 20 15 MW wind turbines, expected to come online in 2026. The electricity generated from Windanker will cover approximately 30% of Mercedes’ electricity needs in Germany. Iberdrola claims that most of the electricity Windanker generates will be traded through long-term PPAs. Mercedes is not the only company to source power from Windanker; Amazon also plans to purchase power from the wind farm.
The move by Mercedes towards renewable energy is part of its long-term sustainability goals, which include an 80% reduction in emissions for its production by 2030. The company aims to have all its production plants worldwide powered by 100% renewable energy with zero emissions by 2039. It is also pursuing a green steel supply chain by 2039 at the latest.
The announcement was made at the ESG Conference 2023 in Stuttgart, where Mercedes emphasized its commitment to environmental, social, and governance (ESG) standards. The company recognizes that it has a role to play in mitigating climate change and is taking steps to reduce its carbon footprint. The PPA with Iberdrola is just one of the many initiatives the company is taking towards sustainability.
As the world moves towards a greener economy, more companies are embracing sustainable energy. The auto industry, in particular, has been under pressure to reduce its carbon emissions. The move by Mercedes to purchase power from an offshore wind farm is a significant step in the right direction and sets an excellent example for other automobile manufacturers to follow. It demonstrates that companies can reduce their carbon footprint while still meeting their energy needs.
