In the future, Covestro will cover a considerable part of its electricity demand in Germany with wind energy from the North Sea. That’s why the materials manufacturer concluded the world's largest ever corporate supply agreement for electricity from offshore wind turbines with energy supplier Ørsted.
Starting in 2025, Ørsted will provide green electricity for ten years, generated in a newly built wind farm off the island of Borkum. The Power Purchase Agreement (PPA) has a capacity of one hundred megawatts – enough to cover the electricity demand of 300.000 people.
This is the first major corporate supply agreement for green electricity from new plants in Germany. It is also an unprecedented step for the chemical industry in Europe.
“By purchasing green electricity, we are underpinning our comprehensive sustainability strategy and preparing ourselves for the expected rise in energy prices and CO2 costs,” said Covestro CEO Dr Markus Steilemann. “We assume that this will enable us to inspire and motivate our customers and corresponding value chains towards sustainable industrial production.”
Covestro will use the electricity generated at the wind farm to supply its production sites in Germany. The DAX-listed company operates three large plants in North Rhine-Westphalia and another in Schleswig-Holstein. The plants produce high-performance plastics and chemical intermediates for foams, coatings, and films, among other products. These are needed in many areas of daily life.
The green electricity for Covestro will come from the Borkum Riffgrund 3 wind farm, which Ørsted will be building in the North Sea over the next few years. It will have a total installed capacity of 900 megawatts and will be implemented without public funding. The Danish company already operates two offshore wind farms off of Borkum.