Portal partners
Ørsted and Covestro Agreement
Author:Mariusz Dasiewicz
Covestro, the world's leading supplier of high-performance polymer materials, signed a 10-year corporate energy purchase agreement with Ørsted. The purchase includes a capacity of 100 MW from the planned Borkum Riffgrund 3 offshore wind farm.
Covestro based in Leverkusen, Germany signed a 10-year fixed price agreement with Ørsted to receive green energy that will be produced in a planned by Ørsted Borkum Riffgrund 3 offshore wind farm. It will be fully put into service in 2025, subject to the final investment decision Ørsted.
Covestro is listed on the Frankfurt Stock Exchange and employs 16,800 people worldwide. It is the first large chemical company in Germany to sign a long-term energy purchase agreement with a new resource with a renewable energy supplier.
"By purchasing green electricity, we support our comprehensive strategy for sustainable development and prepare for the expected increase in energy prices and CO2 costs. We assume that it will allow us to inspire and motivate our customers and appropriate value chains towards sustainable industrial production" - said CEO Covestro Dr. Markus Steilemann. At the same time, we hope that cooperation with Ørsted will stimulate the accelerated expansion of renewable energy in Germany - added Steilemann. Without green electricity, the chemical industry, but also the industry as a whole, cannot contribute to ensuring that Germany becomes largely neutral in terms of greenhouse gas emissions by the mid-century as defined in the Climate Protection Plan."
"Our Covestro Agreement is the first concrete step to ensure stable revenues for the part of energy produced by Borkum Riffgrund 3, which will be built and operated without subsidies," said Martin Neubert, Vice President and CEO of Ørsted Offshore. He added: "At the same time, this corporate PPA agreement shows that the maritime wind can be a reliable source of green energy providing large amounts required by energy-intensive industrial players. With this agreement, Ørsted and Covestro support the German transition to green energy and the further development of renewable energy, which is urgently needed to reduce carbon dioxide emissions in the German industrial sector. "
Covestro will collect 100 MW of the total capacity of 900 MW of the planned wind farm for 10 years, making it the world's largest corporate PPA agreement on offshore wind energy. The PPAs will apply from 2025.
Source: Ørsted
