Richard Neumayer GmbH has positioned itself on the market as a leading business in the production of precision-forged parts, and has thus taken on the weighty role of pioneer for climate protection. Dirk Neumayer is the fifth-generation CEO of the family-owned company with a strong focus on sustainability and innovation.
Customers’ sustainability requirements have developed significantly during the past few years. In the past, climate protection plans were unimportant when awarding projects. But nowadays, customers want environmentally conscious business partners and are actively searching for sustainable applications. Due to its reduced carbon footprint, Richard Neumayer GmbH offers its customers added value when they carry out their own climate protection plans. In this way, sustainability also fundamentally improves competitiveness.
The Green Power Purchase Agreement (PPA)
An important step on the road to climate neutrality is the Green Power Purchase Agreement (PPA) that Richard Neumayer GmbH has signed together with SachsenEnergie AG. A PPA is a long-term power purchase agreement between an energy supplier and an electricity consumer. It is a contractual agreement under which the company undertakes to obtain its electricity from a specific plant. In this case, the PPA facilitated the construction of an innovative solar power system that supplies the company with green electricity. In July, the CEO Dirk Neumayer and the commercial manager and responsible manager for the project Thorsten Zukschwerdt visited the site together with SachsenEnergie AG and toured the modern plant, which was commissioned in March 2023.
Climate protection and the economy
The PPA is of twofold significance for Richard Neumayer GmbH. On the one hand, it allows the company to produce up to 15 percent green energy “by itself”, which is very important because forging steel, as an energy-intensive process, requires a significant amount of energy. On the other hand, the PPA is a relevant step for the company.
Dirk Neumayer explains “When we switched to 100 percent green electricity in January 2021, we also wanted to include a PPA, as this would enable us to actively promote the expansion of renewable energies in Germany and thus make an effective contribution to climate protection. But at the time, this was still uncharted territory in Germany, and the road was correspondingly long. For this reason, I am particularly pleased that we have managed to implement this PPA together with SachsenEnergie AG.”
A road to greater independence
The PPA is also a crucial milestone on the road to greater independence. By 2027, the company plans to generate fifty percent of its energy requirements itself.
“Of course, we have already installed photovoltaic systems on all our available surfaces, but this only covers the base load for our energy-intensive company. The solar power system, made possible by the PPA, is instrumental in achieving this goal. This new 7-MW system is powerful enough to heat our steel to over 1,200°C at midday in the summer and to anneal it so that it can then be formed with up to 3,150 tonnes of press force”, the CEO explains.
Not all green electricity is equal
There are several reasons why it is better to purchase green electricity through a PPA instead of buying it via certificates. One important reason is supporting renewable energy projects. By concluding a PPA, the company directly supports the expansion and financing of renewable energy projects such as solar power systems or wind farms. In this way, Neumayer actively promotes green energy production in Germany and improves sustainable development in the country. Transparency and traceability are further advantages. A PPA allows transparency regarding the actual origin of the supplied electricity and ensures that the purchased electricity comes from a specific renewable energy project. In the case of certificates, there is also the option of labelling the electricity as green, but tracking its actual origin is not always unambiguously possible. A PPA facilitates the conclusion of long-term contracts at fixed prices and gives companies long-term energy cost planning security.
An industry trailblazer
Richard Neumayer GmbH aims to achieve sustainability through its environmental and energy management systems. This not only involves switching to green energy, but also increasing material efficiency and optimising production processes. Every gramme of steel that does not need to be heated saves valuable energy. One example of process optimisation is the innovative heat treatment that allows the use of forging heat and significantly minimises the consumption of natural gas.
Looking ahead
The company has ambitious goals for the future. By 2039, Neumayer aims to achieve climate neutrality in its production. The focus is on innovative processes and technologies to further reduce the consumption of fossil energies. To this end, the company has declared its commitment through the Science Based Target Initiative (SBTI) and has had its goals validated.
The success story of the Richard Neumayer GmbH shows that sustainable corporate activities not only benefit the environment, but also allow for economic success and safeguarding the future in the long term. As a trailblazer in the manufacturing industry, the company is setting standards for sustainable and responsible business operations. It shows that climate protection and entrepreneurial success go hand in hand. With its actions, Dirk Neumayer aims to be a role model and inspire other companies to follow the path of sustainability.
