Mercedes-Benz to use wind energy to power electric vehicle plant

The automaker will harness Statkraft’s wind energy portfolio to power EV plant in Bremen, Germany

Renowned luxury carmaker, Mercedes-Benz has reportedly inked a power purchase agreement (PPA) with renewable energy company, Statkraft AS to supply electricity for powering its EV factory in Bremen, northern Germany, starting 2021.

According to a statement, Statkraft claims that the company’s six wind projects will generate renewable electricity for Mercedes-Benz’s plant that builds its EQC electric car.

Statkraft will exclusively supply Mercedes-Benz with the output of the wind farms in Lower Saxony and Bremen, totaling at 46 MW. However, as per German rules, the six wind farms will lose subsidies based on the region’s national subsidy payment scheme, Renewable Energy Act (EEG), starting 2021.

Reportedly, Statkraft claims Mercedes-Benz to be the first big industrial company to harness electricity generated from wind projects. The power generated from the wind projects will be combined into a deal between Mercedes-Benz and German energy company, Enovos Energie, cite sources.

Andreas Loh, Managing Director, Enovos, was quoted saying that integrating unsubsidized renewable energies into traditional energy delivery models will be significant for the firm’s target market comprising of major industrial companies in the future.

Reliable sources cite that the deal will call for the delivery of 33.1 GWh in 2021, 74 GWh between 2022 and 2024, and 21.8 GWh in 2025, to Mercedes-Benz’s Bremen plant for building of the EQC electric segments, as well as two battery production facilities. In addition, the PPA will be integrated Mercedes-Benz’s current electricity supply contract with third party Enovos.

Incidentally, Statkraft claims that it plans to compete for the business of its old wind farms that, under the EEG act, have reached the end of their 20-year subsidy period. The firm intends to use the PPAs as a strategy to maintain their operations, claim sources.