Long-term Power Purchase Agreement (PPA) over 15 years – approx. 50 GWh per year
The energy to be supplied from planned Windanker offshore wind farm, starting in 2027
With the green electricity from Windanker, TMD will be able to cover more than 50 percent of its total demand in Germany
Berlin, 4 October 2023 – Iberdrola and TMD Friction Services GmbH have signed a contract for the long-term supply of green electricity for 15 years. The agreement covers a supply of approximately 50 GWh of sustainably generated green electricity per year and will cover more than 50 percent of TMD’s total demand in Germany from 2027. The green electricity will be supplied by the Windanker offshore wind farm, which is currently in the planning stage.
“We are delighted about the long-term energy partnership that we are entering into with TMD,” commented Felipe Montero, CEO of Iberdrola Deutschland on the signing of the PPA. “The cooperation with leading companies from the German SME sector is a central component of our growth strategy in Germany. The global expansion of the partnership with TMD Friction is already planned. Currently, we are jointly exploring further green energy initiatives in the UK and Brazil.”
David Baines, CEO of TMD Friction, said: “As a leading global brake friction manufacturer, we take very seriously our responsibilities to our people, customers, environment and society. This is why we have set ourselves extremely ambitious targets to not only continue pioneering sustainable braking solutions, but also to transform how we manufacture our products and approach every aspect within our ecosystem to ensure we reduce our impact, now and in the future.”
Windanker offshore wind farm
The Windanker offshore wind farm, which is currently in planning stage, will comprise 21 offshore wind turbines (15 MW each) that will be connected to the grid in 2026 with a total installed capacity of 300 MW. Windanker will cover an area of approximately 17.9 km² and will be located about 38 km northeast of the Jasmund National Park on the German island of Rügen.
The Baltic Hub in the German Baltic Sea
Windanker is Iberdrola’s third offshore wind farm in the German Baltic Sea and follows on from the Wikinger and Baltic Eagle projects. Wikinger was connected to the grid in 2017 and Baltic Eagle is the second offshore wind project currently under construction off the island of Rügen. Together, these three offshore wind farms form Iberdrola’s so-called Baltic Hub. This will have a total capacity of more than 1.1 GW in 2026. Investments totaling around €3.7 billion are planned for the Baltic Hub. This makes Iberdrola the largest operator of offshore wind farms in the German Baltic Sea.
Iberdrola Deutschland’s integrated growth strategy
The Windanker offshore wind farm is an important component in the integrated growth strategy that Iberdrola is pursuing in its German core market. In the area of sustainable energy solutions, the company aims to cooperate with key players in the German economy to support them in achieving their climate targets with market-based solutions. A core element here is the integration of PPAs into a modern electricity supply portfolio and the development of projects in the area of green hydrogen generation and trading.
In Germany, Iberdrola has brought all its business activities under the wholly owned subsidiary, Iberdrola Deutschland. The company, headquartered in Berlin, is the largest operator of offshore wind farms in the German Baltic Sea. With its offshore and onshore business divisions, Iberdrola Deutschland is active in the planning, construction and operation of offshore and onshore wind farms as well as photovoltaic projects. The company offers its industrial and commercial customers tailor-made solutions for the supply of green energy, from the classic supply of electricity including portfolio management services, to long-term PPA contracts linked to Iberdrola’s own renewable energy facilities, to PV solutions for on-site self-consumption. Iberdrola Deutschland also provides cross-technology integrated solutions, such as battery storage or green hydrogen production for industrial use.
About TMD Friction
TMD Friction is a leading global supplier of high-quality brake friction solutions to the automotive and brake industries. The company develops and manufactures disc brake pads and drum brake linings for passenger cars and commercial vehicles.
TMD Friction supplies vehicle manufacturers with premium products for original equipment, as well as being a driving force in the international aftermarket with the brands Textar, Mintex, Don, Pagid, Cobreq, Nisshinbo and Bendix. The product portfolio also includes brake friction products for motor racing under the Pagid Racing and Mintex Racing brands and for industry applications under the Cosid brand.
TMD Friction Group employs more than 4,200 people worldwide with locations across Europe, USA, Brazil, Mexico, China and Japan.
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Iberdrola, Europe’s largest electricity utility by market capitalization and one of the world’s top three electricity companies, is a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
The company has a workforce of over 40,600 and assets in excess of €154.6 billion. In 2022, Iberdrola posted revenues of nearly €54 billion, net profit of €4.34 billion, with €7.5 billion paid in tax contributions in the countries where it operates. The company helps to support more than 400,000 jobs in communities across its supply chain, and global supplier purchases topped €17.8 billion in 2022. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.