PPAs for global pioneer in pump solutions and water technologies
Supporting: Grundfos
The Company
Grundfos is a global pioneer in pump solutions and water technologies, dedicated to improving quality of life by providing energy and water-efficient solutions for a wide range of applications in water utilities, industries, and buildings. Grundfos is not only committed to advancing the flow of water while respecting and protecting the environment, but they are determined to pursue emission reductions in all regions where they operate.
The Challenge
In 2021, Grundfos established a series of ambitious decarbonization goals to deliver on a net-Zero ambition and reduce their global scope 1 and 2 carbon emissions by 50% by 2023, latest. To meet these targets, a detailed roadmap needed to be developed, with low-carbon options including both energy efficiency and off-site/on-site renewable options across Europe, Asia and North America.
Our Expertise
act renewable has been working with Grundfos since the beginning of its renewable energy journey, guiding the global pioneer through the entire renewable energy roadmap. To cover a significant portion of Grundfos’s emissions, our expertise in identifying, negotiating and signing Power Purchase Agreements (PPAs) was pivotal in securing access to renewable energy sources.
We concluded that a Renewable energy PPA covering approximately 80% of the European demand would both reduce the emissions needed to meet the global 2030 target, years ahead of schedule, and it would also provide the highest degree of additionality and transparency.
Process & Roadmap
Securing Power Purchase Agreements is a demanding and complex process. act renewable supported Grundfos along the following journey:
- Training key stakeholders on the intricacies of PPAs
- Identifying the optimal sourcing strategy and products
- Facilitating an innovative collaboration between Grundfos and renowned German renewable energy company ABO Wind
- Collaborating with LevelTen Energy, the world’s largest two-sided marketplace for renewable energy PPAs, and Gorrissen Federspiel, an international law-firm, to sign the PPA
- Supporting Grundfos to set up carbon (GoO) and energy procurement accounting associated with the PPA
Key Outcomes
With act renewable’s support, Grundfos was able to:
– Secure a high-value, low-risk PPA, providing access to renewable energy sources
– Receive clean, green energy from a wind farm in Haapajärvi, Finland, comprising 14 Vestas turbines. Due to be fully operational by the end of 2023, Grundfos has pledged to procure its energy exclusively from this source for the next ten years
– Cover a significant portion of its emissions, ultimately enabling the company to surpass its emissions reductions targets 5 years ahead of schedule
– Confidently manage the PPA contract and fully capitalize on the PPA both financially and from an emissions reduction standpoint
– Cement the company’s position as a trailblazer in the transition towards a sustainable future
To read more on Grundfos’ journey towards accelerating the corporate transition, check out their sustainability report: