On the 5th of October, Umicore announced it had signed four long-term power purchase agreements (PPAs) with ENGIE and Storm. The PPAs will provide Umicore with renewable energy to power its Belgian sites. This aligns with Umicore’s ambition of achieving net-zero by 2035, for its scope 1 (direct onsite emissions) and scope 2 emissions (associated to energy purchases).

Umicore Re-enforcing its Green Credentials

The four PPAs will mean that a majority of Umicore’s energy, for its Belgian sites, will be obtained from renewable sources. The PPAs will supply two of its main sites in Belgium, a precious metal recycling facility in Hoboken and, its R&D centre in Olen. The PPAs with Storm add up to an annual production capacity of 59MWh and will commence between 2024 and 2025.

Four PPAs

Firstly, Storm will construct and manage a wind turbine on Umicore’s Olen site in Antwerp under a 25-year PPA. This turbine is projected to generate approximately 16MWh annually, covering a quarter of Umicore’s current electricity needs in Olen. It is expected to come online by mid-2024.

Secondly, Umicore will purchase all electricity generated by Storm’s wind farm in Wachtebeke, East Flanders, under a 20-year PPA. The anticipated production is 30MWh per year. It is scheduled to start producing power from the beginning of 2024.

Lastly, Umicore has agreed to buy all the electricity generated by Storm’s wind turbines in Geraardsbergen, East Flanders, approximately 13MWh annually. This 20-year PPA will be in effect from January 1st, 2025.

Additionally, a five-year PPA with ENGIE, will supply 50MWh to Umicore’s Belgian sites from its offshore wind farm, Power-C, in the North Sea. This follows a separate long term PPA signed last year to supply 100MWh of renewable electricity annually until 2030.

Rho’s Evaluation

Umicore’s decision to enter into PPAs with ENGIE and Storm reflects a practical step towards sustainability, aligning its operations with environmental objectives. This move acknowledges the necessity of integrating green practices into industrial processes. In the pursuit of a circular material economy the whole system of a supply chain must aim at reducing its emissions.

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