Schaeffler secures long-term supply with solar electricity

• Schaeffler enters into a supply agreement with Statkraft Markets GmbH and will obtain 11 percent of its electricity requirements in Germany from photovoltaics
• Power purchase agreement will run for a period of ten years, starting in 2023
• Supply agreement represents an important step in the bid to achieve climate-neutral production by 2030

Global automotive and industrial supplier Schaeffler has entered into a long-term power purchase agreement (PPA) with Statkraft Markets GmbH, a leading international producer in the field of renewable energies. From 2023, Schaeffler will obtain photovoltaic power from Statkraft. The volume supplied will correspond to 11 percent of Schaeffler’s total electricity requirements in Germany, constituting a further major step forward in the company’s bid to achieve full climate neutrality across its own production operations (Scope 1 and 2) by 2030. Schaeffler will also be operating with climate neutrality in the area of upstream value creation (Scope 3) and thus with full climate neutrality by 2040. The electricity supplied roughly equates to the annual requirement of the plant at Schaeffler AG headquarters in the Franconian town of Herzogenaurach.

Andreas Schick, Chief Operating Officer at Schaeffler AG, says: “The supply agreement with Statkraft is a milestone for Schaeffler. It proves that we take sustainability seriously and, true to the motto ‘Green Makes the Difference’, are actively committed to achieving a better and more sustainable future. Statkraft is a pioneer in the field of renewable energies and will prove a dependable partner to us in reducing greenhouse gas emissions across our network of plants. The power purchase agreement illustrates our holistic approach in the area of sustainability and also secures the future green energy requirements for our German plants at calculable prices.”

"We are very pleased to support Schaeffler AG’s sustainability goals through this green power purchase agreement," says Dr. Carsten Poppinga, Senior Vice President Trading & Origination at Statkraft. "Supplying industrial companies with customised, high-quality green power solutions is our core business. In addition, green power contracts are a real hedging alternative to conventional power supply contracts in times of high and highly volatile power prices."

Climate-neutral production from 2030
Schaeffler is bestowing particular attention on sustainability and is committed to the 1.5 degree target set by the Paris Agreement – a fundamental task in which the ambitious, company-wide climate targets are set to play a major contributory role. In the bid to achieve climate-neutral internal production operations (Scope 1 and 2) from 2030, Schaeffler is primarily relying on reduction measures and the use of renewable energies, and thus aims to cut production emissions by three quarters by 2025. As part of an energy efficiency program, for example, a total saving of around 47 gigawatt hours will be achieved annually from 2022.

Since 2020 and 2021 respectively, all German production locations and all production locations within the European Union have been sourcing 100 percent of their electricity from renewable sources. By 2024, all locations worldwide will source 100 percent of their electricity from renewable energy sources. The current project with Statkraft even goes one step further in enabling the Schaeffler Group to enter into power purchase agreements which are targeted toward specific production facilities for renewable energies.