LANXESS secures Bavarian hydropower from VERBUND, cutting emissions significantly and advancing its climate-neutral production and value-chain goals.
Specialty chemicals manufacturer LANXESS has taken another decisive step toward decarbonising its operations by securing a long-term supply of renewable electricity from VERBUND, Austria’s largest energy company and one of Europe’s leading hydropower producers. Under a newly signed agreement, VERBUND will provide LANXESS with green electricity over a three-year period, ensuring that the company’s German production facilities are powered entirely by sustainable energy sources.
The contract covers electricity deliveries from 2026 through 2028 and includes approximately 200,000 megawatt-hours (MWh) of renewable power generated by existing hydropower plants located along the Inn River in Bavaria, Germany. This clean electricity will supply LANXESS production sites in Bergkamen, Bitterfeld, Brunsbüttel, Mannheim, and Wietmarschen, enabling uninterrupted operations while significantly lowering emissions. Compared with the average German electricity mix, the switch to hydropower is expected to reduce carbon dioxide emissions by around 60,000 tonnes over the contract period.
This agreement plays a key role in LANXESS’ broader climate strategy, which targets climate-neutral production by 2040. By reducing emissions at the manufacturing level, the company is also lowering the carbon footprint of the products produced at these sites, strengthening its sustainability credentials across customer markets.
Commenting on the collaboration, Alexander Sonnenberg, Head of Energy Procurement at LANXESS, highlighted the importance of reliability alongside sustainability. He noted that LANXESS facilities operate continuously, requiring a stable electricity supply at all times. Hydropower, he explained, offers both constant availability and a low-carbon solution, making VERBUND an ideal partner in the company’s transition toward climate neutrality.
From VERBUND’s perspective, the agreement reflects the growing demand among industrial customers for dependable, renewable energy solutions. Andreas Lanz, Center Manager for Industrial Customers at VERBUND Energy4Business, emphasised that sustainable electricity is increasingly essential for climate protection, energy security, and long-term supply reliability. Through its Climate Transition Plan, VERBUND follows a science-based pathway to reduce greenhouse gas emissions, aiming to achieve net-zero emissions by 2050 while supporting industrial partners in meeting their own climate targets.
VERBUND has a strong operational footprint in Bavaria, where it runs 22 run-of-river hydropower plants across the region and along the Bavarian-Austrian border. These facilities represent a combined installed capacity of 1,040 megawatts and generate approximately 5.9 terawatt-hours (TWh) of electricity annually, with around 4.0 TWh dedicated to Bavarian supply. To further strengthen regional energy infrastructure, VERBUND has already invested roughly EUR 600 million in Bavaria and is planning or seeking approval for additional projects worth about EUR 1 billion.
Environmental stewardship is also central to VERBUND’s hydropower operations. The company applies rigorous ecological standards, including fish migration solutions, river renaturation projects, habitat preservation, and ongoing improvements to water quality. In Bavaria and border regions alone, around EUR 100 million has been allocated for such measures through 2030, with approximately EUR 30 million already implemented.
Beyond its partnership with VERBUND, LANXESS continues to advance its long-term climate ambitions. In addition to achieving climate-neutral production by 2040, the company aims to make its entire value chain climate neutral by 2050, addressing Scope 3 emissions through low-carbon products and supply-chain collaboration. These targets have been validated by the Science Based Targets initiative (SBTi) as aligned with the 1.5°C pathway of the Paris Climate Agreement. Reflecting its progress, LANXESS was recently named to the CDP Climate A List for the seventh consecutive year.
