Covestro Signs First Major Renewable Energy Agreement for its U.S. Operations

Covestro signed a 90 megawatt (MW) virtual power purchase agreement (vPPA) with Ørsted, a Danish energy company.

This 15-year agreement secures a portion of power from the Mockingbird Solar Center in Lamar County, Texas, marking Covestro’s first renewable energy agreement in the United States. Covestro says the vPPA is estimated to offset 70,000 tons of CO₂ emissions annually and to reduce the scope 2 emissions from Covestro’s third-largest production site, located in Baytown, Texas.

“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,” said Markus Steilemann, CEO, Covestro.

“The Mockingbird Solar Center is a unique project that represents both preservation and progress,” said Monica Testa, head of Origination, Ørsted. “The clean energy produced by the solar center will help Covestro to decarbonize its operations, while the conservation of rare native tallgrass prairie habitat supports plant and wildlife biodiversity in the region.”

Edison Energy worked with Covestro to broker the agreement for the vPPA. Ørsted’s Mockingbird Solar Center is expected to begin operation in late 2024. At that time, Covestro plans to start executing on the vPPA, which represents nearly 20% of the Mockingbird Solar Center’s capacity.