Renewable Energy on the Road to Net-Zero Emissions

Covestro pursues a company-wide, board-approved CO₂ roadmap that is updated annually and defines the procurement of renewable energy as one of three central strategic levers for achieving our Scope 1 and Scope 2 net-zero target. This approach complements our systematic efforts to drive energy efficiency across our production processes through innovative technologies.

For the procurement of electricity from renewable sources, we rely on two instruments globally: long-term power purchase agreements (PPAs) from wind and solar power with major energy providers and guarantees of origin/electricity certificates. Measures are prioritized, centrally based on abatement costs and then integrated into the annual corporate planning process in close collaboration with the individual sites. This approach provides cost predictability and enhances our operational competitiveness. Covestro is committed to covering 100 percent of its energy needs with renewable sources and reducing its greenhouse gas emissions from purchased energy to net-zero by 2035.

We are gradually converting our production locations around the world to the use of renewable electricity. Beyond securing our own renewable electricity supply, we also see such direct agreements as a tool for supporting the global expansion of renewable energy capacity. For our current renewable energy figures, see our Annual Report.

Europe

A first direct agreement with Ørsted in Germany was signed in 2019, marking the world's largest supply contract for offshore wind energy at that time. From 2026, the Danish energy provider will deliver green electricity for ten years, which will be generated in a newly built wind farm in the North Sea. The capacity is one hundred megawatts – enough to cover the electricity needs of 300,000 people.

Additionally, Covestro has signed a 15-year solar power supply agreement with energy company EnBW, sourcing electricity from Germany's largest solar park "Weesow-Wilmersdorf" in Brandenburg. Starting in 2022, the German production sites in Dormagen and Krefeld-Uerdingen will be supplied with 63 megawatts of solar power. This green electricity will primarily be used to manufacture mass-balanced high-performance plastics such as Makrolon® RE and Desmopan®, which have a significantly improved CO₂ footprint compared to material produced with conventional energy sources.

In Belgium, Covestro agreed in 2024 on a long-term contract with RWE for electricity and guarantees of origin from offshore wind farms in the North Sea, effective from 2026 to 2030. Through this agreement, the share of renewable electricity at our site in Antwerp is expected to increase from 45 percent to 60 percent of the site’s current power needs, saving 103,000 tonnes of CO₂.

Spain is also part of the renewable electricity expansion: a long-term power purchase agreement (PPA) with bp for solar electricity from a photovoltaic plant in the Aragon region was signed in 2024. The contract has a term of ten years and primarily supplies the Covestro site in Tarragona with renewable electricity. As a result, the share of renewable electricity in the company’s total electricity consumption in Spain increases from less than 10 percent to approximately 30 percent, reducing CO₂ emissions by around 16,000 tonnes per year.

United States

Covestro has concluded long-term renewable electricity supply agreements in the U.S. In 2023, we signed a virtual power purchase agreement (vPPA) with Ørsted for 90 MW of electricity from the Mockingbird Solar Center in Texas. The contract has a term of approximately 15 years and is expected to avoid around 70,000 tonnes of CO₂ emissions annually at our Baytown site. We use the resulting renewable electricity volumes and associated guarantees of origin to accountably decarbonize the electricity consumption of several U.S. sites. As a result, sites in Channelview, South Deerfield, New Martinsville, and Pittsburgh have been able to reduce their Scope 2 electricity-related emissions to net-zero.

China

Covestro has also concluded renewable electricity supply agreements in China. In 2022, we signed a multi-year power purchase agreement (PPA) with the energy company CGN New Energy. The contract covers approximately 300 GWh of electricity per year from wind and solar installations and supplies, among others, the Covestro site in Shanghai, covering about 30 percent of the site’s electricity demand. In addition, the Covestro sites in Guangzhou and Foshan receive renewable electricity from offshore wind projects in the Guangdong province. Overall, this enables an annual reduction of around 126,000 tonnes of CO₂ emissions.

Covestro not only uses renewable energies but also drives their development with innovative materials and solutions. For example, we offer elastomers for coating solar modules, which protect against wind and weather and reduce maintenance costs.