Specialty chemicals manufacturer LANXESS has taken another major step toward climate-neutral production by securing a long-term supply of renewable electricity from VERBUND, Austria’s leading energy provider and one of Europe’s largest hydropower producers.
Under a newly signed three-year agreement, VERBUND will supply LANXESS with around 2,00,000 megawatt-hours (MWh) of green electricity between 2026 and 2028. The power will be generated entirely from existing hydropower plants on the Inn River in Bavaria, Germany, ensuring a stable, around-the-clock renewable energy supply for LANXESS’ German production sites in Bergkamen, Bitterfeld, Brunsbüttel, Mannheim, and Wietmarschen.
According to the companies, the switch to hydropower will reduce carbon dioxide emissions by approximately 60,000 tons compared with the average German electricity mix. The move significantly lowers the carbon footprint of LANXESS’ operations and products from these sites and supports the company’s goal of achieving climate-neutral production by 2040.
“Our production facilities operate 24/7, so we need electricity day and night,” said Alexander Sonnenberg, Head of Energy Procurement at LANXESS. “VERBUND’s hydropower plants can guarantee this reliability while supporting our path toward climate neutrality.”
VERBUND sees the partnership as part of a broader trend toward industrial decarbonisation. “The growing demand for sustainable electricity is a clear trend and a prerequisite for greater climate protection, security of supply, and reliability,” said Andreas Lanz, Center Manager Industrial Customers at VERBUND Energy4Business. He added that VERBUND’s Climate Transition Plan follows a science-based pathway aimed at achieving net-zero greenhouse gas emissions by 2050, while helping industrial customers meet their own climate targets.
VERBUND currently operates 22 run-of-river hydropower plants in Bavaria and along the Bavarian–Austrian border, with a total installed capacity of 1,040 megawatts and annual generation of 5.9 terawatt-hours (TWh). About 4.0 TWh per year is supplied directly to Bavaria.
To further strengthen regional energy production, VERBUND has already implemented or is implementing projects worth around EUR 600 million, with an additional EUR 1 billion in projects in the planning or approval stages.
Environmental protection remains a central pillar of VERBUND’s hydropower strategy. The company adheres to high ecological standards, including measures to protect aquatic ecosystems, ensure fish migration, restore river habitats, and continuously improve water quality. Around EUR 100 million has been earmarked for ecological measures in Bavaria and along the border region by 2030, with approximately EUR 30 million already invested.
In addition to its production-focused climate goals, LANXESS aims to make its entire upstream and downstream value chain climate neutral by 2050 (Scope 3). These targets have been validated by the Science Based Targets initiative (SBTi) as consistent with the 1.5°C pathway of the Paris Climate Agreement. The company was also recently included in the CDP Climate A List for the seventh consecutive year.
With this latest renewable energy partnership, LANXESS and VERBUND underline the growing role of long-term green electricity contracts in accelerating Europe’s industrial energy transition while maintaining security of supply.
