This long-term agreement will cover 10 years and allow Air Liquide to use renewable energy sources to supply some of its industrial gas production assets in Spain.  

ENGIE will provide Air Liquide wind-generated electricity equivalent to the annual power consumption of 15,000 households. Over the term of the agreement, 250,000 tons of CO2 emissions will be saved. 

The contract with Air Liquide enacts ENGIE’s ambition to accelerate the transition towards a carbon-neutral world and reflects the Group’s strong involvement in the growth of the Iberian renewable space. It ensures continuity with the PPAs’ development in Spain, as more than 10 PPAs for downstream and upstream clients have been signed over the last years. 

“This agreement consolidates ENGIE’s strategy in Spain, which consists in establishing long-term alliances with large industrial groups, as Air Liquide, Fortia or Lactalis” explains Alexandre Cosquer, Executive Committee member of ENGIE’s “Global Energy Management & Sales” Business Entity. “We want to support our clients low-carbon ambitions by supplying them green power, and at the same time catalyze the development of wind and solar farms in Spain. Our role is to offtake renewable power to guarantee revenues to producers, manage the associated risks such as price and intermittency risks, and deliver power when our clients require it.” 

More on the ENGIE x Fortia Energia PPA deal 

More on the ENGIE x Lactalis PPA deal 

The PPA’s boom : what’s next? Read the expert view 

This first trade on EEX’s Japanese Power Futures was concluded between ENGIE and Tohoku EPCO Energy Trading Co., Inc. with brokering services provided by the Japanese commodity brokerage firm, enchain Corporation.

Natural fit for ENGIE to strengthen activities in Japan

On top of being active in all liberalized power markets globally, ENGIE has developed close ties and business activities in Japan for many decades. These activities mainly include energy derivatives, LNG and biomass supply to Japan as well as power generation projects and strategic relationships with Japanese major utilities for established global partnerships and joint ventures.

As part of ENGIE’s ambition to lead the transition to a carbon neutral economy, we are active in hydrogen and ammonia-related developments. We are also pursuing developments in offshore wind and building a presence in Client Solutions activities to help clients reduce their carbon footprint.

ENGIE will trade EEX’s Japanese Power Futures through its Singapore-based power desk. The desk is already active in liberalized power markets in Asia Pacific, specifically Australia, New Zealand and Singapore power markets and will bring liquidity to Japan in the current context of energy market liberalization.

As one of the key players in Europe, EEX develops, operates and connects secure, liquid and transparent markets for energy and related products. Offering contracts on, among others, Power, Natural Gas and Emission Allowances, EEX stands as a robust partner for ENGIE.

As Steffen Koehler, Chief Operating Officer at EEX underlines “Today is certainly a milestone for EEX and a very special moment for us. Our new product offering for Japan will be the first Asian market area on the EEX Power Derivatives platform in addition to being the first EEX Group product specifically built for the Asian market. I would like to thank ENGIE for officially being part of the 1^st trade and for the amazing support they have shown us over the past two years”.

ENGIE is confident this first trade will only pave the way to many more and reinforce our commitment to Japan.

“With this first trade on EEX Power Futures, we are delighted to contribute in what we see is the beginning of a major development in Japan”, says Gordon Waters, CEO of ENGIE’s Business Entity “Global Energy Management & Sales” in Asia Pacific. “As a global energy player, ENGIE is committed to bringing liquidity in all liberalised energy markets and Japan is a major addition to our Asian power activities. We would like to warmly thank EEX for making this ambitious project a reality and we are looking forward to more deals.”

References in the media

• Hedge week 
• Energyworld.com
• Reuters
• Yahoo!Life

With its first long-term power purchase agreement for solar energy in Germany, ENGIE confirms its ambitions in the expansion of renewables on the German market. ENGIE and Energiekontor AG have concluded a Power Purchase Agreement (PPA) for a solar park in Mecklenburg-Vorpommern.

The plant, with an installed capacity of 41.5 MW, is to go into operation in 2021 and produce around 45,600 megawatt hours of solar electricity per year, which corresponds to the supply of approximately 15,000 German households.

“Based on a collaborative approach, we have convinced Energiekontor of our range of services and are proud to partner with them towards carbon-neutral economy. With this long-term contract, both companies are making a major contribution to the market integration of renewable energies, which is to continue even in times of crisis,” says Bernd Dinauer, Head of the German platform for ENGIE’s business unit “Global Energy Management & Sales”.” As a reliable partner, we connect renewable energy producers and our customers engaging in the energy transition“.

“Solar parks on PPA basis in Germany are the future. We are pleased to have found in ENGIE the third major supplier who is taking this new path with us and thus strengthening our pioneering role“, says Peter Szabo, Chairman of the Board of Energiekontor AG, with satisfaction.

Within the framework of the agreed contract term of 15 years, the two companies are assuming a total produced electricity volume of around 684 gigawatt hours, which will be fed into the grid outside the EEG support regime. This will save approx. 400,000 t CO² emissions compared to the average German power generation.

ENGIE’s Business Entity “Global Energy Management & Sales” manages 10 GW of green energy in Europe’s short-term markets, of which 2 GW is managed through long-term PPAs outside the statutory support framework. In Germany, ENGIE has a direct marketing portfolio of 3.4 GW, operates its own wind farms and is active in project development and repowering. Building on this experience, the company supports operators of wind turbines and solar parks in finding the best solution for their plants. In addition to long-term power purchase agreements, ENGIE also offers the purchase of plants whose EEG remuneration is expiring.

From a lager view, in Europe, ENGIE have recently signed a long-term agreement providing for the supply of more than 400  GWh/ year over 11 years to Spanish and Portuguese large industrials. PPAs are and will be a key component of the journey towards a carbon-free world, which is the highest priority of ENGIE, supporting clients in their energy transition.

Since January 1^st, ENGIE has started to supply power generated from its renewable portfolio and through our energy market activities. This innovative PPA has been structured through multiple contracts designed to meet the specific needs of industrials with activities in various sectors such as steel, cement, chemistry, metallurgy or paper.

Our ENGIE Global Energy Management & Sales teams in Madrid, Brussels and Paris were instrumental in structuring the offer, managing the full scope of activities required to build the PPA: these notably included origination, pricing, structuring, legal, credit aspects, along with  first-class optimization and risk management services.

“This new corporate long-term PPA is one great step towards making the energy transition model a reality; it again demonstrates that ENGIE has the expertise and capabilities to  link upstream and downstream needs and create opportunities along the value chain, therefore accelerating the integration of renewables on energy markets”. Olivier Bloeyaert, Board Member at ENGIE’s Business Entity “Global Energy Management & Sales”.

>>I want to know more about ENGIE’s PPA offer

In the East of France, the Departmental Council of “Meurthe-et-Moselle” (which rules an area of 7,00 000+ people) has decided to supply its whole real estate properties, including the middle schools buildings, with renewable energy. More than 100 premises have access to 100% green energy, which will be locally produced by a wind farm from 2021. 

The Power Purchase Agreement (PPA) signed between ENGIE and the Departmental Council is a first time for a territorial community in France.  

A PPA is long or short-term arrangement between a renewable asset owner – seller – and a power consumer – buyer, here a local authority but it could also be a corporate. The buyer purchases the asset’s electric output for a predetermined period and price. It’s a wide-spread contractual mechanism matching the large consumers’ increasing demand for green power. PPAs enable the buyer to purchase power from renewable energy generators and help them to reduce their carbon footprint and energy costs, making them instrumental to support ENGIE’s clients through their energy transition.  

In the face of a growing demand for renewables, ENGIE’s global energy management teams answer both producers et consumers’ needs, by managing risk allocation between upstream and downstream stakeholders, onboarding part of the risks or mitigating them through first-class hedging strategies.  

Additionally, as renewable energy is subject to climatic variations, the teams forecast the assets’ production, in order to have precise view of its output, mitigate weather risks and help consumers to reach their sustainable goals.  

For LHOIST the agreement with ENGIE is a major step forward in a more comprehensive strategy to significantly reduce its carbon footprint on its longstanding Belgian market. Indeed, ENGIE will deliver 100% green electricity generated by wind farms in the North Sea, which will cover up to 50% of LHOIST’s energy consumption in Belgium. Depending on weather conditions it will be possible to save yearly 15,000 to 20,000 tonnes of CO₂ emissions. Using ENGIE’s blockchain-based web platform TEO (now called Attributes) enables LHOIST to track its actual green energy consumption with full transparency and certifies its authenticity with higher standards than today’s traditional Guarantee of Origin mechanism.

As the generation of renewable energy is dependent on the meteorological conditions in the North Sea, the consumption of LHOIST’s industrial sites is being balanced with conventional energy from the grid. ENGIE’s business unit Global Energy Management & Sales is synchronizing supply and demand on a 15-minute basis and providing risk management.

Under these agreements, SONATRACH will deliver new volumes of natural gas to ENGIE with a total volume of almost 10 bcm over several years. The first shipments will be dispatched as gaseous gas into the Trans-Mediterranean pipeline. Then, shipments of liquid natural gas (LNG) will be carried out in particulier at the Fos Tonkin LNG terminal in France.  

Both, Mr Kamel-Eddine Chikhi, Chairman and CEO of SONATRACH and Mr Pierre Chareyre, Deputy CEO of ENGIE took part in the signing ceremony and witnessed the opening of a new chapter in their groups’ partnership. 

The announced purchase of a total of 230 MW from two ENGIE projects in Texas, will increase Microsoft’s renewable energy portfolio to more than 1,900 MW. The deal also illustrates how customers can procure it – this Power Purchase Agreement (PPA) includes an innovative volume firming agreement (VFA) that will convert the intermittent renewable energy supply into a fixed 24/7 power solution meeting our client’s energy needs.

Such structured deal gives our client a competitively priced, stable green supply over an exceptional tenor, all intermittency and risks being taken on by ENGIE.

“ENGIE’s ambition is to work with our customers and communities to lead the transition to a zero-carbon world,” said Isabelle Kocher, CEO of ENGIE. “We are proud to support Microsoft in its plan to increasingly meet its energy needs with renewable power, and to do so in a highly customized way to meet 24/7 demand over many years.”

The partnership between ENGIE and Microsoft will not only produce more renewable energy in the U.S., it will also advance the digital transformation of the sector. Currently installed on more than 15,000 MW of assets worldwide, ENGIE’s Darwin data management platform, boosts the performance of its renewable power generating facilities. Darwin enables predictive maintenance, real-time meteorological data analysis, and real-time monitoring of the output of the assets, among many other benefits, using intelligent cloud technologies such as IoT and AI. The digital platform has already enabled ENGIE to optimize wind turbine settings and increase production by 0.5%, an increase in efficiency which is valued over 10 years of operation at approximately €10 million.

This success illustrates how, through our PPA offers, ENGIE play a crucial “risk transformer” role, facilitating the green power value chain from producer to consumer.  It paves the way for other similar structures, unlocking the interest of corporates too often restrained by traditional PPA-related risks.

Read the press release

Learn more about ENGIE’s green energy strategy and how ENGIE aims to transform the physical world of energy through digital technology

Want to know more about our offers ?  Get more details about our risk management solutions and our offsite PPA offer

Nearly half of the megawatts produced will be in Europe. This will enable more than 1 billion euros in investments in the EU. Almost half (793 MW) of the new renewable energy capacity purchased will be located in Europe, specifically from Finland, Sweden, Denmark and Belgium.

“Sustainability has been one of Google’s core values from our earliest days. We’ve been a carbon-neutral company since 2007. In 2017, we became the first company of our size to match our entire annual electricity consumption with renewable energy (and then we did it again in 2018). As a result, we became the largest corporate buyer of renewable energy in the world.” declares Thierry Geerts, country director at Google Belgium.

Google’s 92-megawatt purchase from ENGIE in Belgium, produced by offshore wind farm Norther in the North Sea, is its first large-scale renewable energy purchase in the country and marks the first time that Google buys power from an offshore wind farm. “Modern offshore wind turbines can be more than twice the size of onshore turbines, enabling us to bring large amounts of low-cost, clean electricity to the grid where our Belgian data center is located.”, explains Geerts.

Being the largest green energy producer in Belgium, ENGIE aims to be the leader of the Net Zero carbon transition ‘as a service’. Philippe Van Troeye, CEO of ENGIE Benelux: “In order to reach this ambition, ENGIE provides its customers with the solutions they need to reduce their ecological footprint. We are proud to help Google meet their environmental goals in the Benelux by facilitating their consumption of renewable energy in Belgium and we hope this deal sets the tone for future international collaborations.

Federaal Minister van Digitale Agenda Philippe De Backer: “Google en ENGIE die de handen in elkaar slaan en zo digitale economie op basis van duurzame energie omzetten in de praktijk is de ‘way to go’. De ontwikkeling van windenergie in de Noordzee en de wil van Google om zijn totale energieverbruik te matchen met lokale hernieuwbare energie worden op deze manier allebei ondersteund.”

Marie-Christine Marghem, Federal Minister of Energy, Environment and Sustainable Development: « Je suis ravie de compter la société Google parmi les partenaires de la transition énergétique en Belgique. En augmentant sensiblement sa part d’énergie renouvelable grâce à l’énergie éolienne offshore en complément de celle produite par son centre solaire, Google investit durablement pour les générations futures. »

ENGIE and Shell Energy Europe both previously secured gas supply from Azerbaijan’s Shah Deniz gas project under contracts signed in 2013. Under this latest agreement, Shell Energy Europe is significantly increasing the availability of gas for its customers by acquiring part of ENGIE’s 25-year contract. ENGIE remains a significant buyer of Shah Deniz gas and conducts, as a mid-streamer, a dynamic optimization of its long-term position.

The transfer agreement, signed on September 5, covers supplies of Azerbaijani gas that will begin flowing into Italy upon completion of the Trans Adriatic Pipeline.

• Philippe PERFUMO, Head of Long Term Gas, ENGIE Business Unit Global Energy Management
• Lidya SALAHOVA, General Manager at Azerbaijan Gas Supply Company (AGSC), operated by SOCAR
• Jonathan McCloy, General Manager, Gas, Shell Energy Europe Limited