Nuon is to supply flexible energy to three of AkzoNobel's chemical production sites in the Netherlands as part of an agreement to purchase a total net volume of 1.5TWh.
The deal will allow AkzoNobel to take advantage of flexibility in its chemical production and its own electricity generation to balance fluctuations in energy supply to optimise costs.
The innovative supply solution - which involves sites in Delfzijl, Hengelo and Rotterdam - provides access to trading markets and represents a next step towards AkzoNobel meeting its strategic and sustainability targets.
It will also enable the purchase of renewable power from other parties, and facilitate other future Power Purchase Agreements.
Nuon will offer AkzoNobel access to the flexibility markets through its trade floor and dispatch centre.
"The deal underlines our commitment to using more sustainable energy resources as it allows us to balance swings in supply of electricity, particuarly that generated by wind and solar power," said Knut Schwalenberg, Chairman of AkzoNobel Netherlands.
"It also gives us further momentum in our industry transition towards 100% carbon neutrality by 2050."
Nuon CEO, Peter Smink said: "We power climate-smarter living and help our partners become more sustainable.
“A smart, flexible energy system offers significant benefits to partners such as AkzoNobel.
“It will help them use energy more flexibly and increase the efficiency of their entire energy system.
“This agreement, therefore, is not only an investment in Dutch energy, but will also help AkzoNobel to become even more climate smart."
The set-up of the agreement is expandable to Germany, Denmark and Sweden for a portfolio-based approach to AkzoNobel's energy procurement.