Orsted A/S shake its hands with Covestro AG and signed a 10-year corporate power purchase agreement (PPA). Through this cooperation, Orsted A/S plans to sell 100 megawatts of power from a German wind farm to Covestro AG, while it is considered as one of the biggest offshore wind PPA ever signed.
The deal goals to supply Covestro, chemical electricity for the following 10 years from the Borkum Riffgrund 3 wind farm, which is going to be put into order in 2025. This agreement can be used as an example of how important are the renewable power projects, since they can bring and secure cash flow without the aid of government subsidies or funds.
Our agreement with Covestro is the first tangible step to secure stable revenues for part of the power generated by Borkum Riffgrund 3 which will be built and operated without subsidies.
…said Martin Neubert, Executive Vice President and CEO of Ørsted Offshore.
Moreover, the polymer company, Covestro plans to use the wind farm’s electricity for its factories based in Germany. As the company stated by purchasing in green electricity they boost its sustainability strategy and they are well-prepared for the expected rise in energy prices and CO2 costs.
With this agreement, Ørsted and Covestro support the German energy transition and the continued build-out of renewable energy which is urgently needed to reduce carbon emissions in the German industrial sector.
…Martin Neubert continued.
Concluding both sides through the agreement aim to enable and motivate their customers towards sustainable industrial production as they want to ensure that Germany will slowly become a largely greenhouse gas-neutral by the middle of the century.
