Covestro signs world’s largest corporate supply contract for offshore wind energy
Covestro has 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 energy for ten years, generated in a newly built offshore wind farm, Borkum Riffgrund 3.
The Power Purchase Agreement has a capacity of 100 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, and is also an unprecedented step for the chemical industry in Europe.
Dr Markus Steilemann, CEO of Covestro, said: “By purchasing green electricity, we are underpinning our comprehensive sustainability strategy and preparing ourselves for the expected rise in energy prices and CO2 costs.”
“We assume that this will enable us to inspire and motivate our customers and corresponding value chains towards sustainable industrial production.”
“At the same time, we also hope that the cooperation with Ørsted will stimulate the accelerated expansion of renewable energies in Germany. Without green electricity, the chemical industry, but also industry as a whole, cannot make its contribution to ensuring that Germany becomes a largely greenhouse gas-neutral by the middle of the century, as specified in the climate protection plan.”
Martin Neubert, Executive Vice President and CEO of Ørsted Offshore, said: “Our agreement with Covestro is the first tangible step to secure table revenues for part of the power generated by Borkum Riffgrund 3 which will be built and operated without subsidies.”
“At the same time, this corporate Power Purchase Agreement shows that offshore wind can be a reliable source of green power delivering the large volume required by energy-intensive industrial players.”
“With this agreement, Ørsted and Covestro support the German energy transition and the continued build-out of renewable energy which is urgently needed to reduce carbon emissions in the German industrial sector.”