Covestro to Procure 90 MW Renewable Energy from Ørsted

Covestro has announced that four of its US sites have achieved net-zero Scope 2 electricity emissions through Renewable Energy Certificates under its virtual Power Purchase Agreement with Ørsted. The agreement with Ørsted, which provides Covestro with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO2 emission annually.

February 20, 2025. By Mrinmoy Dey

Covestro, a global supplier of high-tech polymer materials, has announced that four of its US sites have reached net-zero Scope 2 electricity emissions through the allocation of Renewable Energy Certificates (RECs). This achievement is a result of Covestro's existing virtual Power Purchase Agreement (vPPA) with Ørsted, a renewable energy player headquartered in Denmark.

The agreement with Ørsted, which provides Covestro with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO2 emissions annually. This represents a significant step towards Covestro's goal of climate-neutral production by 2035.

The Covestro US sites Channelview, Texas, South Deerfield, Massachusetts, New Martinsville, West Virginia and Pittsburgh, Pennsylvania, have achieved net-zero Scope 2 emissions for electricity. Going one step further, the sites in South Deerfield, New Martinsville, and Pittsburgh have now achieved complete net-zero Scope 2 emissions. The remaining credits have been applied to Covestro's Baytown, Texas facility.

Commenting on the development, Thorsten Dreier, CTO of Covestro said, “Even in a persistently challenging market environment, we are working towards our goal of climate-neutral production by 2035 and are consistently implementing our strategy of fully aligning ourselves with the circular economy. By leveraging renewable energy, we're not just reducing our carbon footprint – we're actively shaping a brighter future for our industry.”

Samir Hifri, Chairman and President of Covestro LLC stated, “Our partnership with Ørsted is a prime example of how collaboration and innovation can drive meaningful change in our industry. We're proud to be at the forefront of sustainable practices in the chemical sector and look forward to continuing to execute our strategy to grow sustainably in the US.”

This announcement follows Covestro's recent low triple-digit million Euro investments across multiple US sites, further solidifying the company's commitment to growth and sustainability in the North American market.

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Other Renewables

Orsted

Covestro

Virtual power purchase agreement

Renewable Energy Certificates

Thorsten Dreier

Samir Hifri,

RE procurement