Syngenta signs five year green power deal with Statkraft

GERMANY – Syngenta has signed a five year virtual power purchase agreement with Statkraft to secure renewable electricity for its crop protection and seeds operations in Europe, marking its first deal of this kind.

The agreement covers 125 GWh of electricity per year, reaching a total of 625 GWh by 2030. Statkraft will supply green power based on wind generation in Germany, while Syngenta will receive guarantees of origin for the agreed volume.

“This is Syngenta’s first vPPA, marking a key step in our carbon reduction strategy,” said Rachel Stenson Bugnon, Global Head CP Sourcing at Syngenta. “This approach allows us to make real progress toward our carbon reduction targets while maintaining operational efficiency across our European facilities.”

A financial model for clean energy

The vPPA operates as a financial contract rather than a physical electricity supply. Syngenta will continue to use its existing energy suppliers, while the agreement links the company to renewable generation in the German market.

Sascha Schröder, Vice President Central European Origination at Statkraft, said demand for such agreements continues to grow. “VPPAs are becoming increasingly important in Germany. We are pleased to support Syngenta with this PPA solution to reduce emissions from its production,” he said. “We are building a bridge between wind farm operators that no longer receive subsidies and companies that want long term green power procurement that fits their sourcing strategy.”

Statkraft bases the agreement on an artificial wind farm that reflects the output of onshore wind turbines in Germany. This structure allows companies to secure renewable electricity indexed to the spot market over a defined period.

Support for wind assets and corporate targets

The agreement allows Syngenta to move toward its climate goals without changing its operational processes or supplier contracts. At the same time, the deal supports wind facilities that could face financial pressure after subsidy schemes end, helping them continue operating.

Syngenta said the arrangement strengthens its broader sustainability strategy and contributes to its long term emissions targets across European operations.

The company also noted that corporate demand for renewable power continues to rise across the agribusiness sector, as firms face growing expectations from regulators, customers, and investors to reduce emissions.

In recent months, several multinational companies in Europe have increased their use of long term renewable energy contracts to stabilise energy costs and reduce carbon footprints. Analysts say such agreements could expand further as more wind and solar assets reach the end of subsidy periods and seek private sector buyers.

For Syngenta, the agreement represents a practical step in aligning its energy sourcing with its climate goals, while supporting the continued operation of renewable assets in Germany.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.