Swedish state-owned utility Vattenfall AB has signed a contract with Akzo Nobel NV (AMS:AKZA) that will allow the Dutch paints and specialty chemicals company to increase its use of renewable energy, the two said today.
The agreement calls for Vattenfall to supply 1.25 TWh of environmentally certified electricity per year to seven Akzo Nobel plants in Sweden and Finland. Hydropower and wind already account for most of the electricity supplied by Vattenfall and the two companies have agreed to boost the share of renewable energy to Akzo Nobel's facilities in Sweden and Finland to 100% by 2020, Akzo Nobel said.
The Dutch company noted that it currently has a global renewable energy share of 40% and the contract with Vattenfall takes the share in the Nordic region to 60%.
Under the agreement, the two companies will also cooperate to balance swings in renewable power supply on the Swedish national grid.
"AkzoNobel was looking for a partner for long-term cooperation, renewable electricity and flexibility in supplies," said Branislav Slavic, head of business sales Nordic at Vattenfall. "The deal shows that it is possible to combine customer needs and contribute to a climate smart society," Slavic also said.
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