32 °C Singapore, SG
July 22, 2021
Latest News
BlackRock Real Assets to back Korean offshore wind farm project CIP to sell minority stake in Taiwanese offshore wind cluster Nearly 76 Gigawatt-Hours of Battery Cells Produced in U.S.A 2010–2020 Melting tropical glaciers sound an early warning Enhanced cooperation on renewable energy transition between International Renewable Energy Agency and China Decarbonising industry is key to China’s net-zero strategy Carbon Brief’s China weekly digest. Rising seas could cost Asia’s biggest cities US$724 billion by 2030 Electric Vehicle Growth is Accelerating but its Given Rise to a New Social Faux Pas Southeast Asia PR industry launches working group to curb greenwashing Asia Pacific wind and solar spend to hit $1.3trn this decade How the next 5 years can buy us a decade to solve climate change G7 leaders urged to support SAF Uncrewed survey vehicles for offshore wind farm surveys Pathway to global climate catastrophe is clear Mohdi: India’s vision for a biofuels future EGAT to pilot flexibility in Thailand China Briefing, 3 June 2021: New climate ‘leaders group’; ‘Record-breaking’ electricity consumption; ‘Artificial sun’ Wärtsilä commissions first energy storage projects in the Philippines China’s first floating wind turbine ready for installation IEEFA Update: G7 coal finance exit and why it matters for India Accelerating Renewables in Asian Cities: Opportunities for Cleaner Air Iberdrola and Mitsubishi Power partner for renewable technologies Bundestag clears way for more climate protection in transport Analysis: China’s carbon emissions grow at fastest rate for more than a decade Ørsted forms alliance for Japanese offshore wind Hitachi ABB Power Grids selected for Thailand’s largest private microgrid Taiwanese company buys majority stake in ENGIE’s storage and EV arm US ethanol exports rebound on near-record shipments to China The Pacific calls Australia to Fund Our Future – NOT Gas.

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