Renewable Energy Management
In order to decarbonize our carbon footprint in our operations and value chain, we are exploring a diverse portfolio of solutions. We are actively reducing our reliance on conventional energy and increasing our use of renewable energy sources.
Decarbonizing IVL’s energy consumption via onsite and offsite renewable energy development is one of our Decarbonization strategies. We are consuming renewable energy (biogas, biomass and renewable electricity) in our operations and are further exploring the option of increasing the use of renewable electricity to achieve our 2025 ambitions. The use of renewable energy is via a combination of
Onsite Renewable Energy
Aside from biomass and biogas, we strive to generate an optimum amount of embed renewables at our sites through solar roof top and ground mounted. In 2021, we completed the installation of solar rooftops at four sites while one additional site is due for completion in the near future. We are also focusing on increasing our consumption of solar energy, through solar rooftop installations at other locations.
Offsite Renewable Electricity
Renewable electricity procurement through global virtual power purchase agreements (VPPAs) can offer further opportunities to reduce our GHG emissions in line with our commitment to the Paris Agreement. We are currently exploring procurement of renewable electricity through VPPAs and other market instruments of this type (for example, RECs and ROCs).
The percentage of purchased electricity from renewable sources increased globally from 2.89% in 2020 to over.7% in 2021. Below is the list of plants utilizing 100% renewable electricity
- Indorama Ventures Portugal PTA
- Indorama Ventures Quimica, Spain
- Kordarna Slovakia
- UAB Orion Global Pet Lithuania
- UTT Technische Textilien Germany
- Wellman International Ireland
Furthermore, we have two solar installations commenced in Egypt and China in 2021 to increase renewable energy usage with an overall capacity of 8.4 MWp.
Our progress on purchased renewable electricity: Throughout 2021 and continuing into 2022, we are working with long-term innovation roadmaps to map pathways toward net-zero emissions in the coming decades. In 2021, we concluded a new Virtual Power Purchase Agreement (VPPA) in the U.S to source renewable electricity which will commence production in 2023 – 2024. We expect to run RFP and project shortlist in Q12022, making the commercial negotiations and finalizing the deals in Q22022 and having the total volume 1.6m MWh by 2025.
With our success in a project implementation in the U.S., we are expanding our renewable electricity procurement in the EU and will be actively pursuing opportunities for renewable electricity as another strategic decarbonization action.