Jörg Teichmann, Chief Procurement Officer of PowerCo SE, said: “We want to build a robust, European battery supply chain that also sets high standards in terms of sustainability. With the purchase agreements that have now been agreed, we are ensuring that our cell factory in Salzgitter is operated with green electricity. At the same time, we are making a contribution to the further expansion of renewable energies in Europe.”
PowerCo wants to set new standards in the sustainability of batteries in the volume segment. As cell production is very energy-intensive, the use of CO2-free electricity offers strong leverage. In Salzgitter alone, the agreed contracts can save around 115,000 tons of CO2 equivalents per year compared to the German electricity mix in 2023. PowerCo relies on so-called Power Purchase Agreements (PPAs), which guarantee the partners Alterric and Envitec Biogas AG stable long-term income and thus facilitate the financing of new wind and solar parks.
Alterric
Alterric will supply PowerCo SE with a total of around 2.4 terawatt hours or 240 gigawatt hours of green electricity per year over the ten-year term of the contract. The electricity will come from four wind power projects in Lower Saxony, all of which are in independent commercial operation and therefore not eligible for state EEG subsidies. Delivery is scheduled to begin in 2025.
“The off-take agreement between PowerCo and Alterric demonstrates how important the PPA model is for the industry to meet its high quality standards in electricity supply. The direct agreement between buyer and producer guarantees this quality. It is therefore imperative that the options currently being discussed to change the design of the electricity market in Germany will also enable such market-based solutions in the future,” explains Alterric Managing Director Dr. Frank May.
Alterric develops, plans, markets and manages wind and hybrid parks and is one of the largest onshore green energy producers in Central Europe. Headquartered in Aurich, Lower Saxony, the company currently operates over 2,400 megawatts of installed capacity in its own portfolio.
EnviTec Biogas AG
EnviTec Biogas AG will supply PowerCo SE with a total of around 650 gigawatt hours or 65 gigawatt hours of green electricity per year over the ten-year term of the contract. The electricity will come from a new solar park in Buckow / Brandenburg, which has been financed 100 percent by the von Lehmden Group and implemented in cooperation with EnviTec Biogas. The start of delivery has been agreed for 2025.
EnviTec Biogas AG, which operates from Lohne and Saerbeck, is currently Germany's largest biogas producer, but is now also involved in the expansion of solar power, among other things. “The energy transition is a Herculean task that we as a society can only master together and by using all available technologies and renewable energies. In addition to the production of biogas and biomethane, we are therefore focusing on other renewables and investing widely in the production of green energy,” says Olaf von Lehmden, CEO of EnviTec Biogas AG.
PowerCo SE
PowerCo SE is a global battery cell manufacturer that was founded by the Volkswagen Group in 2022. Headquartered in Salzgitter, the company is responsible for the development and production of battery cells as well as the vertical integration of the value chain. PowerCo is currently building three cell factories with a total volume of up to 200 gigawatt hours per year: Salzgitter in Germany, Valencia in Spain and St. Thomas in Canada.