28 °C Singapore, SG
January 12, 2021
Latest News
Kerry climate team begins to take shape Australia not among 50 countries vowing to protect 30 per cent of land and sea by 2030 Investors pressure HSBC to take stronger action to phase out coal financing Morgan Stanley takes stake in SolMicroGrid in a nod toward Energy-as-a-Service model Daimler’s Mercedes-Benz triples its electric car sales as CEO predicts a ‘transformative’ decade IEEFA Indonesia: PLN has ‘Green Ambition’ but is short on renewable energy credibility 2021: The Decarbonization Race Is On From climate ambition to renewables realization – are you hopeful for a better 2021? Improving energy storage will be crucial to a smooth energy transition Major US pension fund plans fossil-free future EV Battery Packs ~50% Cheaper Than In 2016 A $7 trillion climate change warning to the stock market from its biggest shareholder World still warms in 2020 as greenhouse gases fall Human handiwork’s mass exceeds world lifeforms China and Australia face a climate tipping point Lunaz Electric Classic Range Rover Collection Includes 007’s Roofless Off-Roader Analysis: When might the world exceed 1.5C and 2C of global warming? Proposed steep tariff cut risks disruption in Vietnam’s wind market, industry body warns Is South Korea on the right path to carbon neutrality? Rising ocean heat leaves fish gasping for oxygen World Bank helps developing countries’ wind spurt Project on biomass gasification technology launched Green hydrogen, Holy Grail for long-term energy storage, getting supermajors’ attention Ford unveils new electric van for its profitable commercial business Greek island ditches fossil fuel cars to go green Toshiba to produce ‘state of the art’ wind turbine Climate Is Driving Voting More Than You Might Think, Especially For Women Researchers develop new method to turn used cooking oil into biodiesel Africa’s resistance grows as climate crisis worsens Asia’s aspiring ‘green-collar’ workers hope for jobs in Covid recovery

Covestro and Ørsted sign power purchase agreement

German chemical company Covestro has agreed the world’s largest corporate power purchase agreement (PPA) with Danish wind energy company Ørsted for its Borkum Riffgrund (BR) 3 offshore windfarm when it is complete.

The agreement is the first PPA for green electricity from new plants in Germany, and is the world’s largest corporate PPA, a deal which involves a company buying power, typically renewable power, direct from a producer rather than interfacing with an energy company.

These deals can see companies make significant savings, and an agreement of this size will go a long way to establish trust in corporate PPAs as a reliable form of acquiring energy.

BR 3 will have a capacity of 900MW, with Covestro purchasing 100MW of this for a period of ten years from 2025. BR 3 is part of a series of offshore windfarms developed by a number of companies including Ørsted in the German North Sea.

BR 1 has a capacity of 277MW and was completed in 2013, whilst BR 2 has a capacity of 450MW and was completed in 2018. In total, the current two windfarms are estimated to provide energy for nearly 800,000 homes in Germany.

Covestro will use the electricity procured from the windfarm to power its three production sites in North Rhine-Westphalia and one is Schleswig-Holstein in North and North-eastern Germany.

Covestro CEO Dr Markus Steilemann 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.”

Covestro’s share price currently stands at €41.75, giving the company a market capitalisation value of €7.64bn.

Covestro share price in 2019

Source