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Saint-Gobain and Tion enter into a long-term PPA

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Energy Global,

Saint-Gobain in Poland and Tion Renewables AG (currently being renamed from Pacifico Renewables Yield AG) have signed a long-term power purchase agreement (PPA). Under the PPA, 100% of the green electricity produced by Tion’s Polish wind parks will be sold on the market and virtually settled at a fixed price with Saint-Gobain. The expected annual electricity production from the 20 wind turbines with an installed capacity of approximately 52 MW amounts to approximately 190 GWh, making it one of the largest PPAs of this kind ever signed in Poland. The produced electricity equates to the annual power consumption of approximately 100 000 average Polish households.

Important milestone on Saint-Gobain’s journey to carbon neutrality in 2050

The agreement contributes to Saint-Gobain’s goal of becoming carbon neutral by 2050 and underlines the group’s vision to become the worldwide leader in light and sustainable construction while contributing to the global effort to fight climate change, protect natural resources, and provide comfortable and decent housing to all. This 15-year contract starting in 2025 will cover approximately 45% of Saint-Gobain’s electricity needs in Poland. It will reduce CO2 emissions by 135 000 tpy, thereby reducing nearly 20% of Saint-Gobain’s scope 1 and 2 emissions in Poland and 4% of Saint-Gobain’s scope 1 and 2 CO2 emissions in Europe.

Saint-Gobain is a key player in the fight against climate change in its industry with sustainable solutions representing 72% of the group’s sales and all solutions sold by the group in one year resulting in the avoidance of approximately 1300 million t of CO2 emissions over their lifespan.

In combination with the Science Based Targets initiative just recently having announced its endorsement of Saint-Gobain’s commitments to reduce its CO2 emissions by 2050, this PPA demonstrates once again the group’s acceleration on its net zero carbon roadmap.

Joanna Czynsz-Piechowiak, CEO of Saint-Gobain Poland & Ukraine: “The signing of this agreement, important for the Saint-Gobain Group in Poland, is proof of the consistent implementation of our purpose ‘Making the world a better home’ and the Grow & Impact strategic plan, to care about people and the planet. As market leaders in sustainable construction, we want to show the direction of the necessary changes in energy sources. Through these and other activities, we will systematically reduce the impact of our industrial activities and manufactured products on the natural environment.”

Proof of concept for Tion to use long-term corporate PPAs as an efficient tool to accelerate the energy transition

This landmark transaction demonstrates that long-term corporate PPAs as an efficient tool to accelerate the energy transition

This landmark transaction demonstrates that long-term corporate PPAs can be an important tool to accelerate the energy transition. On the one hand, agreements such as this support energy-intensive businesses with achieving their sustainability targets. On the other hand, long-term PPAs provide electricity producers such as Tion with stable and predictable revenues allowing for additional financial flexibility.

Christoph Strasses, Co-CEO of Tion, said: “We are delighted to partner with Saint-Gobain on their journey towards net zero. State-of-the-art, long-term agreements with highly reputable counterparties such as Saint-Gobain demonstrate our team’s ability to execute with highest professional standards and will help us to channel more capital into the energy transition, which is a key priority for us.”




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