In another major step forward on its path to climate neutrality, Covestro has signed several multi-year power purchase agreements (PPA) with CGN New Energy. This includes one that will cover around 30% of the electricity needs of the important production site in Shanghai/China.
»Covestro aims to become climate-neutral by 2035 and is systematically converting its production worldwide to renewable energies to achieve this goal.«
Dr. Markus Steilemann, CEO, Covestro
Under the PPA, Covestro AG, Leverkusen/Germany, will purchase approx. 300 gigawatt hours of green power annually for its Integrated Site Shanghai from CGN’s wind and solar farms in the town of Lenghu, Qinghai/China. The agreement will reduce Covestro's carbon emissions in China by around 126,000 tons of CO2/year. The PPA is scheduled to take effect in January 2023.
The Shanghai site is already partly supplied by renewable energy. In 2022 alone, it is expected to use more than 300 gigawatt hours of solar power generated in northwest China.
Meanwhile, Covestro's Guangzhou and Foshan sites in south China will be powered with 100% renewable electricity. Starting next year, both sites will be using power form CGN New Energy Holdings Co., Ltd., Hong Kong/China, generated from offshore wind farms in Guangdong province.
The latest PPAs in China follow purchase agreements Covestro had already signed with energy suppliers in Europe. Under one agreement, utility Ørsted, Fredericia/Denmark, will supply offshore wind energy starting in 2025, which is expected to meet 10% of the electricity needs of Covestro's sites in Germany. Engie Electrabel S.A., Brussels/Belgium, will provide onshore wind energy to meet 45% of the electricity demand of the Antwerp/Belgium production site.