PowerCo SE has secured 3 terawatt hours of green electricity for its Salzgitter gigafactory through long-term agreements with Alterric and EnviTec Biogas. These partnerships will cut 115,000 tonnes of CO2 emissions annually and support Europe’s renewable energy goals.
Salzgitter is set to become a cornerstone of sustainable battery manufacturing. PowerCo SE, a global battery cell manufacturer founded by Volkswagen Group, has committed to a decade-long renewable energy strategy. By partnering with leading green energy producers Alterric and EnviTec Biogas AG, PowerCo will ensure its Salzgitter gigafactory operates exclusively on climate-friendly electricity starting in 2025.
“With the purchase agreements that have now been agreed, we are ensuring that our cell factory in Salzgitter is operated with green electricity”
- Chief Procurement Officer of PowerCo SE
The agreements mark a significant step towards sustainability in battery production, a process notorious for its energy intensity. Jörg Teichmann, Chief Procurement Officer of PowerCo SE, underlined the ambition: “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.”
A 10-year commitment to green energy in automotive battery manufacturing
The long-term contracts will supply approximately 3 terawatt hours of renewable electricity over ten years. Alterric will contribute 240 gigawatt hours annually from wind power, while EnviTec Biogas AG will provide 65 gigawatt hours per year from solar energy. Collectively, these sources will power the Salzgitter gigafactory and significantly reduce its carbon footprint.
The environmental impact is substantial. Compared to Germany’s electricity mix in 2023, these agreements will eliminate around 115,000 tonnes of CO2 emissions annually.
“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.””
- Olaf von Lehmden, CEO of EnviTec Biogas AG
Leveraging power purchase agreements
PowerCo’s reliance on Power Purchase Agreements (PPAs) ensures stability for all parties involved. These agreements offer long-term income security for Alterric and EnviTec while facilitating the financing of new renewable energy projects.
Alterric, headquartered in Aurich, Lower Saxony, manages over 2,400 megawatts of installed capacity. Its Managing Director, Dr. Frank May, highlighted the importance of PPAs: “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.”
Alterric’s four wind power projects in Lower Saxony will operate independently of government subsidies, a testament to the company’s commitment to market-based solutions.
”With three gigafactories under construction—Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada—[PowerCo SE] aims for an annual production capacity of 200 gigawatt hours”
Expanding solar horizons
EnviTec Biogas AG, Germany’s largest biogas producer, is also investing in solar energy. A new solar park in Buckow, Brandenburg, financed entirely by the von Lehmden Group, will generate the 65 gigawatt hours of electricity for PowerCo.
Olaf von Lehmden, CEO of EnviTec Biogas AG, emphasised the collaborative nature of the energy transition: “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.”
PowerCo’s strategic role in the green energy project
Founded in 2022, PowerCo SE is positioning itself as a leader in sustainable battery production. With three gigafactories under construction—Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada—the company aims for an annual production capacity of 200 gigawatt hours. Its commitment to sustainability aligns with broader European efforts to lead the green energy revolution.
By securing green energy for its Salzgitter plant, PowerCo is not only addressing the immediate environmental challenges of battery manufacturing but also contributing to Europe’s renewable energy infrastructure.
As the Salzgitter gigafactory comes online in 2025, it will stand as a model of how industrial innovation can align with environmental stewardship.
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