Iberdrola Deutschland signs PPA with Mercedes-Benz for new offshore wind farm

Iberdrola Deutschland has signed a PPA with Mercedes-Benz and will deliver sustainable electricity from its new German offshore wind farm Windanker in the Baltic Sea from 2027. The supply agreement secures the Mercedes-Benz Group a share of more than 140 MW of the planned total capacity of up to 315 MW. The contract is one of the largest PPA for green energy in the automotive industry in Europe. With this PPA and other agreements, Iberdrola is bringing its offshore wind energy to the market without subsidies and is materialising an important further step of Germany’s energy transition. The company is emphasising its commitment to provide green electricity while making a considerable contribution to the sustainable transformation of the German industry. Iberdrola Deutschland already operates the 350-MW Wikinger wind farm and is building the 476-MW Baltic Eagle in the Baltic Sea.

Felipe Montero, CEO of Iberdrola Deutschland said: “The agreement with Mercedes-Benz Group AG is an important step that allows Iberdrola Deutschland to expand partnerships with industrial and commercial customers that are willing to reduce their carbon footprint and transition towards a green economy. It is through cooperations like these that we can develop large-scale renewable energy projects successfully and on market-based mechanisms.”

Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, Production and Supply Chain Management said: “Renewable energy supply is an important lever for reducing CO2 emissions throughout the global production network of Mercedes-Benz and for our entire company. By partnering with Iberdrola, we are taking an important step to further secure our green energy capacity for the future. We are thus underpinning our comprehensive claim to be a sustainable pioneer and at the same time our intention to play an active role in shaping the energy transition.“

Mercedes-Benz will be the largest electricity offtaker from the Windanker offshore wind farm, Iberdrola's newest project in the German Baltic Sea with an installed capacity of up to 315 MW when it is fully commissioned in 2027. Iberdrola is thus supporting Mercedes in its goal of at least halving CO2 emissions per passenger car over its entire life cycle by the end of this decade compared to 2020 levels.

The energy partnership with Mercedes-Benz Group AG is a special step in Iberdrola's integrated growth strategy in the important German core market. The company aims to collaborate with other key players in the German economy by providing renewable energy, market-based solutions to meet climate goals. This includes the integration of PPAs into a modern electricity supply portfolio as well as the development of projects in the fields of hydrogen generation and supply.

In Germany, Iberdrola has brought together all its business activities under the wholly owned subsidiary Iberdrola Deutschland. The company, headquartered in Berlin, is the largest operator of offshore wind farms in the German Baltic Sea. With its Offshore and Onshore divisions, Iberdrola Deutschland is active in the planning, construction, and operation of offshore and onshore wind farms as well as photovoltaic projects. The company offers its industrial and commercial customers tailored solutions for the supply with green energy, from the classic supply of electricity including portfolio management services, to long-term PPA contracts, to PV solutions for on-site self-consumption. Iberdrola Deutschland also provides cross-technology integrated solutions, such as battery storage or green hydrogen for industrial use.