Bazan Group and OPC Energy have announced the signing of a ten-year electricity purchase agreement starting in July 2023. The arrangement is for the supply of up to 125 megawatts at an annual cost of NIS 250 million. OPC will supply Bazan with 50 megawatts of electricity from renewable energy sources beginning in January 2025, in a phased manner. Accordingly, 50% of Bazan’s estimated average electricity consumption through the agreement will be from green electricity and green certificates.
Two years ago, Bazan Group presented a new low-carbon economy strategy, through which it will become a leading supplier of renewable energy for transportation and advanced polymers. As part of the group’s strategic objectives, it has set an ESG target to take action to reduce its carbon footprint.
OPC Energy’s supply of green electricity will enable Bazan to realize its goals in several stages. In the first stage, starting in 2025, Bazan will be able to reduce at least 12,500 tons of CO2. In the second stage, beginning in 2026, Bazan will be able to reduce up to 140,000 tons of CO2, in accordance with the supply from renewable energy sources in Israel.
In addition to supplying green electricity based on solar fields for Bazan’s consumption, the contract includes International Renewable Energy Certificates (IREC), which constitute an international certificate for production from a renewable energy source in Israel.
Apart from the supply of electricity through OPC, Bazan Group produces 25% of the electricity it consumes from its own production. The agreement enables Bazan to continue to advance an independent cogeneration electricity project in the future based on natural gas.
The arrangements for the supply of electricity based on renewable energy production are part of OPC Energy’s strategy to expand its activities in the field of renewable energies and the supply of electricity from renewable sources in Israel.
Assaf Almagor, CEO of Bazan: “I welcome the renewal of the agreement and the long-standing partnership with OPC, which is based on trust and a similar worldview. The partnership aligns with Bazan’s Group’s strategy and commitment to its ESG goals in general and the use of renewable energy in particular. We committed in our latest ESG report to reduce carbon emissions by 25,000 tons per year, and the new electricity agreement will allow us to realize and deepen that commitment in the near future.”