Iberdrola signs 140MW wind PPA with Mercedes-Benz

Iberdrola has signed a power purchase agreement (PPA) with Mercedes-Benz for electricity from the German offshore wind farm Windanker in the Baltic Sea.

The supply agreement secures the Mercedes-Benz Group a share of more than 140MW of the planned total capacity of up to 315MW to be supplied from 2027.

Mercedes-Benz will be the largest electricity offtaker from the Windanker offshore wind farm and will support the automaker in its goal of halving CO2 emissions per passenger/car over its entire life cycle by the end of this decade compared to 2020 levels.

Felipe Montero, CEO of Iberdrola Deutschland said: “The agreement with Mercedes-Benz Group AG is an important step that allows Iberdrola Deutschland to expand partnerships with industrial and commercial customers that are willing to reduce their carbon footprint and transition towards a green economy. It is through cooperations like these that we can develop large-scale renewable energy projects successfully and on market-based mechanisms.”

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Jörg Burzer, member of the Board of Management of Mercedes-Benz Group AG, Production and Supply Chain Management said: “Renewable energy supply is an important lever for reducing CO2 emissions throughout the global production network of Mercedes-Benz and for our entire company."

Burzer added that the parnership with Iberdrola marks an important step for securing green energy capacity, underpinning their claim to be a sustainable pioneer and their intention to "play an active role in shaping the energy transition.“

Iberdrola Deutschland already operates 350MW Wikinger wind farm and is building 476MW Baltic Eagle in the Baltic Sea.

The partnership with Mercedes-Benz Group AG is an important step in Iberdrola's growth strategy in the German market. The company aims to collaborate with other key players in the German economy by providing renewable energy, market-based solutions to meet climate goals.

This includes the integration of PPAs into a modern electricity supply portfolio as well as the development of projects in the fields of hydrogen generation and trading.