Commercial, Wind - June 6, 2023
Covestro Signs VPPA in Texas
Covestro, a manufacturer of polymer materials and their components, signed a 90-megawatt (MW) virtual power purchase agreement (VPPA).
The agreement was signed with Ørsted, a clean energy company in the U.S. market headquartered in Denmark.
The 15-year agreement secures a portion of power from the Mockingbird Solar Center in Lamar County, Texas, which is Covestro’s first renewable energy agreement in the U.S. The VPPA is estimated to offset 70,000 tons of CO2 emissions annually and will reduce the Scope 2 emissions from Covestro’s third-largest production site located in Baytown, Texas.
“This important new announcement builds upon Covestro’s existing agreement with Ørsted and clearly signals our commitment to the use of renewable energy,” said Markus Steilemann, CEO of Covestro in a statement. “The inclusion of renewable energy to help power our facilities is a critical component to reducing our Scope 2 emissions and becoming operationally climate neutral by 2035.”
Edison Energy worked with Covestro to broker the agreement for the VPPA. Ørsted’s Mockingbird Solar Center will produce enough clean energy to power roughly 80,000 homes and is expected to begin operation in late 2024. At that time, Covestro will start executing on the vPPA, representing nearly 20% of the Mockingbird Solar Center’s capacity.
Starting in 2025, Ørsted will provide green electricity for 10 years to supply Covestro’s production sites in Germany, generated in a newly built wind farm off the island of Borkum, Germany. At the end of 2022, Covestro had already covered 12% of its global energy requirements with electricity from renewable sources. That figure is expected to rise to 16 to 18% in 2023.