Rolls-Royce has signed a long-term power purchase agreement (PPA) with Stadtwerke Ulm/Neu-Ulm (SWU) for 20,000MWh of CO2-free electricity annually. The electricity will come exclusively from the Donaustetten hydropower plant in southern Germany. By using hydropower, Rolls-Royce expects to cut its carbon emissions by approximately 7,000 tons each year.
“With this partnership, we are contributing to the local energy transition. And by sourcing electricity from hydropower, we are further increasing the proportion of renewable energy in our electricity mix, in line with our strategic goal of significantly reducing our CO2 emissions,” said Bernd Baader, Head of Engine Assembly Plants and Infrastructure at Rolls-Royce Power Systems.
The five-year agreement guarantees stable energy conditions and supports Rolls-Royce’s broader sustainability strategy. The company has been expanding its use of renewable energy through microgrids and solar power.
“Our hydropower plants have stood for clean and reliable energy for decades. With this contract, we are helping Rolls-Royce to significantly reduce its carbon footprint,” said Klaus Eder, Managing Director of SWU. “Such partnerships are essential to actively drive forward the transition to a climate-neutral economy.”
Rolls-Royce is also investing in local renewable energy initiatives. It operates microgrids at its Friedrichshafen, Augsburg, and Aiken (USA) plants, integrating photovoltaic systems with battery storage and combined heat and power plants. Additionally, two solar parks near its Power Systems headquarters in Friedrichshafen have been supplying CO2-free electricity since 2022, with a combined capacity of 5.2 MWp.
