Novelis, an aluminum rolling and recycling company, has recently inked a green Power Purchase Agreement (PPA) with Statkraft, Europe's largest renewable energy producer. This agreement is poised to cover a substantial portion, up to 40%, of the electricity demand at two key Novelis manufacturing facilities in Germany—Nachterstedt Recycling and Nachterstedt Rolling. This allocation roughly translates to about 16% of Novelis' overall electricity consumption in Germany.
Over a duration of 10 years, the PPA will furnish Novelis with approximately 58 gigawatt-hours (GWh) of renewable electricity annually. Notably, this energy will be sourced entirely from German wind and solar installations. Commencing delivery on March 1, 2024, the PPA is projected to yield a significant reduction in carbon emissions associated with Novelis' electricity consumption. Specifically, it is anticipated to curtail carbon dioxide equivalent (CO2e) emissions by over 17,000 metric tons per year, amounting to a total reduction of 170,000 metric tons CO2e.
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This strategic move aligns with Novelis' steadfast commitment to mitigating its carbon footprint. The company has set an ambitious goal to slash its carbon emissions by 30% by 2026, measured against a baseline from fiscal year 2016. Furthermore, Novelis aims to achieve carbon neutrality by 2050 or potentially even earlier.
Emilio Braghi, Executive Vice President of Novelis Inc. and President of Novelis Europe, expressed enthusiasm about the partnership, emphasizing its synergy with Novelis' overarching sustainability objectives. “Enabling our plants to power a significant part of their production with renewable electricity while decreasing carbon emissions and preserving natural resources, is a perfect match to our Novelis purpose and brings us an important step forward on our sustainability journey,” stated Braghi.
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He further underscored the company's pride in collaborating with Statkraft, renowned for its expertise and reputation in the renewable energy sector, affirming Statkraft's suitability as a partner capable of tailoring a green PPA to cater to Novelis' specific operational requirements.
