Renewable Energy

ICL is committed to transitioning to a low carbon economy and mitigating climate change. ICL's target is to increase its renewable energy consumption to 50% by 2040. As part of this vision, ICL is increasing its use of renewable energy. \

Renewable energy is widely considered to be a key component in the solution for continued economic and human development and combating the harmful influence of climate change. Therefore, as renewable energy becomes more readily available, efficient, and economically feasible, countries worldwide have encouraged and developed large scale use of clean energy.

ICL’s use of renewable energy has nearly doubled in the past year

To support our transition to renewable energy, and to focus our efforts on increasing renewable energy in our energy mix, ICL created a cross-organizational team that consists of representatives from our Global Procurement Organization (GPO), Operational Excellence, Innovation & Energy team and Sustainability team.

Investing in Electricity from Renewable Sources

In alignment with ICL's climate strategy and the Company's commitment to the SBTi, ICL entered into a long-term power purchase agreement with Doral Energy Ltd., an Israeli company, for "green electricity". According to this long-term agreement (15 years), ICL will purchase, on an annual basis, 75 million kWh of electricity from renewable sources. Delivery will commence in January 2024 once the relevant regulation comes into effect. During the course of the contract, ICL estimates that approximately 500k tonnes of CO2e will be reduced.

In recent years, we invested in transitioning to renewable energy (externally supplied electricity) for most of the electricity consumed at our European sites. In 2022, this approach was successfully rolled out to our facilities in the US and Brazil and initiated in Israel and China. ICL’s energy mix in Brazil, Europe and the US now includes more than 95% electricity purchased from renewable sources, which has significantly reduced our Scope 2 emissions. We will continue to deepen our approach as the markets for on-site renewable energy, long-term power purchase agreements and other supply mechanisms continue to mature.

In addition, following feasibility studies that we conducted across Europe and Israel in 2021 to identify which of our site assets are suitable for Photo-Voltaic (PV) installations, in 2022 we expanded our assessment to include our North American operations. Our other main sites – predominantly in Brazil and China – will be assessed during 2023. As a result, we have begun a broad initiative to install photovoltaic panels in suitable areas within the operational boundaries of our sites. We initiated approximately 11 MW of solar energy (PV) projects to be installed on rooftops and on the ground at ICL sites in Israel. However, implementation of PV in Israel is hindered by statutory challenges, and as a result, only a limited number of projects have been approved and construction commenced. Additional projects are expected to be installed at ICL’s sites in Germany and Spain.

Over the long-term, we are looking to implement projects that are compatible with our 2050 net zero goal. As we expect these projects to include major infrastructure challenges, we are initiating them now. One of the major projects is the Green Sdom project.

The “Green Sdom Project”, aims to convert our largest industrial site in Sdom, Israel, to green energy.

The project includes establishing large-scale solar PV fields with total capacity of around 1,500 MWp. During the day, the produced energy will be consumed directly by the operations of ICL’s Sdom plants, where the surplus will be stored, using advanced storage solutions. This project is subject to the approvals of various authorities and regulators in Israel. If approved, the first phase of the project is expected to operate by 2028.

In 2019, we began transitioning to renewable energy by purchasing renewable Guarantees of Origin (GoO) derived from renewable energy sources for the electricity use needs of our European sites. The electricity was generated by diverse renewable sources including wind turbines, solar photovoltaic, hydropower and biomass energies. Our overall global renewable energy consumption in 2022 was 3,238k GJ (nearly 900k MWh), and over 8% of our overall energy consumption (direct and indirect), was derived from renewable sources.

Energy Storage as Part of a Low-Carbon Economy

We are adapting our product portfolio to the needs of the new low carbon economy. As part of this effort, ICL is engaged in the research and development of bromine-based batteries and phosphate-based composition systems intended for renewable energy storage. Our energy storage portfolio will be significantly expanded by our plan to build a lithium iron phosphate (LFP) cathode active material (CAM) manufacturing plant in St. Louis, Missouri.

7.2

By 2030, increase substantially the share of renewable energy in the global energy mix

7.3

By 2030, double the global rate of improvement in energy efficiency

Renewable Energy

Investing in Electricity from Renewable Sources

Energy Storage as Part of a Low-Carbon Economy

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