Yahoo Finance REWE Group and Ørsted sign long-term power purchase agreement for future German offshore wind farm
REWE Group, one of Germany’s leading food retailers, has signed a 10-year power purchase agreement with Ørsted to procure 100 MW of green electricity from Ørsted’s Borkum Riffgrund 3 offshore wind farm which is set to become operational in 2025.
Having procured electricity from renewable energy sources since 2008, the agreement with Ørsted represents REWE Group’s largest renewable energy offtake agreement to date and makes REWE Group the first German food retailer to purchase electricity from an offshore wind farm in the North Sea.
The 100 MW of green power from Borkum Riffgrund 3 equals the power consumption of 1,500 REWE stores. REWE Group has a goal of becoming climate neutral by 2040.
“Our goal is to become climate neutral by 2040,” said Lionel Souque, CEO of REWE Group. “It is obviously an ambitious goal. But it is also a goal that we will achieve. We must achieve it because energy plays a strategic role in our business: We are a green power pioneer in the German food retail sector. Our stores have been completely using power produced from renewable sources since 2008. Offshore wind energy has tremendous potential. We will take another step towards climate neutrality by using the first green power generated from the North Sea.”
The power purchase agreement with Ørsted was signed and will be managed by EHA Energie-Handels-Gesellschaft, REWE Group’s energy procurement arm.
Jan-Oliver Heidrich, Managing Director of EHA, added: “By signing the power purchase agreement with the new wind farm, REWE Group is directly promoting the expanded use of renewable energies, is assuming process responsibility and is playing an even more active role in the energy transition.”
At Ørsted, the world leader in offshore wind, Rasmus Errboe, Head of Region Continental Europe, applauds REWE group for supporting the transition from fossil to green energy:
“The world urgently needs to shift to renewable energy to reduce carbon emissions. To achieve this systemic change, action is needed from governments, energy providers, and corporate energy customers. REWE Group has a long tradition of buying sustainable power, and by purchasing power from Borkum Riffgrund 3, they’re supporting the build-out of affordable new renewable energy at industrial scale.”
More than a decade ago, Ørsted started an ambitious transformation, moving from being one of Europe’s most coal-intensive energy companies to becoming a world leader in offshore wind and being named the most sustainable energy company in the world by Corporate Knights in 2019, 2020, and 2021. By 2030, Ørsted aims to install 50 GW of renewable energy capacity world-wide, including 30 GW of offshore wind and 17.5 GW onshore wind and solar PV.
Facts about Borkum Riffgrund 3
Borkum Riffgrund 3 is expected to become operational in 2025, subject to Ørsted's final investment decision, which is expected by the end of 2021.
Borkum Riffgrund 3 will have a total export capacity of 900 MW and will be built in the German North Sea close to Ørsted's existing offshore wind farms Borkum Riffgrund 1 and Borkum Riffgrund 2.
In the German offshore wind auctions, Ørsted was awarded the right to build the project with a bid of EUR 0 per MWh. This was made possible by a number of cost drivers, including the installation of next-generation wind turbine technology, very good site conditions and high wind speeds, and anticipated revenue-stabilising power purchase agreements with industrial customers such as REWE Group.
For further information, please reach out to:
Ørsted Media Relations
Michael Korsgaard
+45 99 55 94 25
mikon@orsted.dk
Investor Relations
Allan Bødskov Andersen
+ 45 99 55 79 96
ir@orsted.dk
About REWE Group
The cooperative REWE Group is a leading trade and tourism group in Germany and Europe. In 2020, the company generated total external revenue of around 75 billion euros. REWE Group was established in 1927, employs over 380,000 people and operates stores in 22 European countries.
Its sales lines include the supermarkets and consumer stores operated by the brands REWE, REWE CENTER, BILLA, BILLA PLUS and ADEG, the discounter PENNY, the health-and-beauty stores of BIPA and toom DIY stores. The company also operates the convenience stores REWE To Go and the e-commerce activities REWE Lieferservice and Zooroyal. The Lekkerland Group conducts the business group’s wholesale activities in the area of to-go consumption. REWE Group conducts its travel and tourism business under the umbrella of DER Touristik Group. The company’s brands in this area include the tour operators ITS, Jahn Reisen, Dertour, Meiers Weltreisen, Kuoni, Helvetic Tours, Apollo and Exim Tours. DER Touristik Group also consists of more than 2,400 travel agencies (including DER Reisebüro, DERPART and cooperation partners), the hotel brands Sentido, Club Calimera, Cooee, PrimaSol and Playitas Resort as well as the direct operator clevertours.com.
About EHA Energie-Handels-Gesellschaft
EHA Energie-Handels-Gesellschaft is based in Hamburg and serves as the 360° energy service provider for the company with its many locations in Germany and Austria. EHA generates individual added value for its customers by supplying them with green power and gas, efficiency and climate-protection advisory services, operation of trade fair booths and energy data management. The use of digital technologies facilitates continuous consumption and cost reductions. EHA pays more than lip service to climate protection. The company has committed itself to renewable energies and acts as an energy producer as well. EHA operates photovoltaic systems and combined heat and power plants fired completely by biogas at customers’ properties. EHA is a subsidiary of REWE Group.
About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,472 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion).
Attachment
