"Ten Nordic energy companies were involved in the procurement process and Vattenfall had the best offer," says Olof Wogén, Director Group Risk Management at Lantmännen.
As of 1 January, Vattenfall is supplying electricity to Lantmännen's 265 facilities in Sweden, Denmark, Finland and Norway, with an annual total volume of around 490 GWh. The electricity is primarily sourced from hydro power, a large proportion of which is environmentally declared in compliance with EPD. The contract runs until 2019 inclusive.
"We're working for a vibrant agricultural sector, and the electricity we use has to come from renewables. Vattenfall clearly showed that they take environmental issues very seriously indeed, which is extremely important for us," says Wogén.
Vattenfall was quick to respond to the questions initially asked by Lantmännen in the tender request and gave a competent and committed impression at the meetings that followed.
"We are looking forward to acquiring a high level of electricity price hedging expertise via Vattenfall Power Management, VPM," says Wogén, who appreciated the extensive setup provided by Vattenfall Sales, Legal, Environmental staff and VPM.
Vattenfall's transition to a sustainable company was a decisive factor.
"We would not have chosen Vattenfall five years go with the way it was set up at the time. The core values of both companies are now rather similar, which is a prerequisite when Lantmännen chooses business partners."
The business deal may open the door to other forms of collaboration.
"The collaboration opens the door to many opportunities and discussions concerning closely-related areas which Vattenfall is involved in, such as energy efficiency improvement," says Branislav Slavic, Head of Vattenfall Sales.
"We take a positive view of the opportunity to further discuss green collaborations and to investigate how Vattenfall might suit Lantmännen in other markets," concludes Wogén.