Mercedes-Benz is taking a major step toward its decarbonisation goals by building one of Germany’s most powerful onshore wind farms at its test facility in Papenburg, located in northern Germany. In collaboration with German energy park developer UKA, the company has received official approval to begin construction on the ambitious 140 MW wind project. Once operational, the wind farm is expected to supply nearly 20% of Mercedes-Benz’s total electricity demand across the country.

The project highlights the automaker’s broader shift toward energy independence through renewables, and aligns with its pledge to significantly cut emissions from its production operations. The scale of the installation places it among the largest wind initiatives in the nation and reinforces Germany’s efforts to bolster domestic renewable energy infrastructure while supporting industrial decarbonisation.

Aligning with Mercedes-Benz’s Long-Term Climate Strategy

The Papenburg wind farm is a key milestone in Mercedes-Benz’s sustainability roadmap. In 2023, the company outlined a target to reduce CO2 emissions from production by 80% by the end of the decade. Additionally, it aims to ensure that 70% of energy needs at its own manufacturing facilities are met through renewable sources by 2030. Looking further ahead, the automaker is working toward having all global production sites powered entirely by clean energy and achieving carbon neutrality by 2039.

READ MORE: Microsoft Strikes $6.2 Billion Deal for AI Infrastructure Powered Entirely by Renewable Energy

Joerg Burzer, Member of the Board of Management for Mercedes-Benz Group AG, said the project underlines how the company is converting its sustainability goals into concrete action.

“The wind farm in Papenburg is an important building block of our sustainable business strategy, both ecologically and economically. The start of construction demonstrates our consistent progress in integrating green energy into our production network and creating tangible impact,” he said.

Building on an Existing Industrial Footprint with a Vision for Clean Power

The site of the future wind farm is the company’s own 800-hectare testing ground in Papenburg, originally used for high-speed and endurance testing of vehicles. The decision to build on this location reflects a creative reuse of industrial land for climate-positive outcomes, minimising environmental disruption while maximising infrastructure potential.

The facility will host 20 wind turbines developed by German manufacturer Nordex, and will be developed as part of a long-term Power Purchase Agreement (PPA) between Mercedes-Benz and UKA. Once completed by 2027, the turbines will generate up to 140 MW of clean energy, enabling a considerable offset of fossil-fuel-powered electricity from the grid.

UKA Secures Long-Term Supply Agreement with Global Automaker

For UKA Group, the partnership with Mercedes-Benz represents a significant endorsement of its ability to deliver climate-friendly electricity solutions at industrial scale. Gernot Gauglitz, Managing Partner of UKA, expressed pride in the company’s role as both developer and long-term supplier.

“We are proud to supply Mercedes-Benz AG with renewable electricity for the next 25 years. This partnership demonstrates that UKA is a trusted provider even for large industrial players seeking secure, climate-aligned energy sources,” he said.

The agreement also provides UKA with long-term revenue stability while showcasing how major energy users can play a leading role in accelerating the renewable transition through private contracts and on-site generation.

A Model for Industrial Decarbonisation in Germany

Mercedes-Benz’s Papenburg project exemplifies the growing trend of industrial players taking energy generation into their own hands. With regulatory pressures mounting and corporate sustainability expectations increasing, the model of using in-house land to host large-scale renewable installations is likely to become more widespread.

Moreover, the partnership between Mercedes-Benz and UKA sets a precedent for how industrial sectors can work hand-in-hand with energy developers to scale clean energy production, stabilise long-term power costs, and support national climate goals. As Germany continues its push to increase onshore wind capacity, such projects could become a central part of its energy security and decarbonisation strategy.

Explore OneStop ESG Marketplace: Wind Energy

Looking Ahead

As the global auto industry continues to electrify its vehicle line-ups and decarbonise operations, initiatives like the Papenburg wind farm reflect a critical shift in mindset. Rather than purchasing renewable energy through credits or secondary markets, Mercedes-Benz is investing directly in physical infrastructure that will deliver long-term climate benefits and cost stability.

With construction now underway, the wind farm not only reinforces the automaker’s commitment to a greener future but also underscores the powerful role that industry can play in reshaping Europe’s energy landscape.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.