German polymer materials manufacturer Covestro has entered a long-term power purchase agreement (PPA) with energy giant BP.
Under the ten-year agreement, bp will supply Covestro with a substantial gigawatt hours volume of renewable electricity, along with guarantees of origin to certify the energy's green credentials.
The solar power will be sourced from an operational photovoltaic (PV) farm in Teruel, in Spain's Aragon region.
The deal will significantly increase the use of renewable energy in Covestro's Spanish operations, aligning with its goal of achieving operational climate neutrality by 2035.
The partnership is set to enhance Covestro's renewable energy consumption in Spain from under 10% to 30%.
Covestro CTO Thorsten Dreier stated: “With the PPA, we are demonstrating that we at Covestro are using every opportunity to consistently increase the proportion of energy from renewable sources at our sites worldwide.
"Because we are convinced that our vision of a complete focus on the circular economy and climate neutrality is the only way to ensure the long-term success of our company."
This agreement follows Covestro's 2022 announcement that its three smaller Spanish production sites have transitioned to 100% renewable electricity.
The agreement also means that renewable sources will now power a significant portion of Covestro's main production site in Tarragona. The shift is expected to reduce the company's CO₂ emissions by an estimated 16,000 tonnes annually.
bp Energía España president Olvido Moraleda stated: “This agreement is a significant milestone for bp in Spain, enabling us to provide renewable energy through a PPA to a key industrial customer.
“This deal enables bp and Covestro to work together in delivering lower carbon energy to a traditionally hard-to-abate sector, as part of bp’s strategy to become an integrated energy company.”
bp's involvement in the Spanish energy market spans more than two decades, primarily in natural gas and liquified natural gas management.
The company has been expanding its footprint in the renewable sector, managing a solar offtake portfolio and supplying renewable power.
