Polymer materials manufacturer Covestro and bp have forged a significant long-term power purchase agreement (PPA) for renewable energy sourced from a solar power plant in Spain. This 10-year agreement marks a pivotal move for Covestro, increasing the share of renewable energy in its total electricity consumption in Spain from under 10 percent to approximately 30 percent. This initiative represents a critical stride towards Covestro’s ambitious goal of achieving operational climate neutrality by 2035.
The agreement extends Covestro’s existing commitment to renewable electricity, initially implemented across its smaller production sites in Spain located in Zona Franca (Barcelona), Parets del Vallés, and Santa Margarida i els Monjos since 2022. Now, with the inclusion of its main production site in Tarragona, a substantial portion of Covestro’s electricity needs will be fulfilled by renewable sources, leading to an estimated reduction of about 16,000 tonnes of CO2 emissions annually.*
Thorsten Dreier, Covestro’s Chief Technology Officer, emphasizes the company’s dedication to progressively increasing renewable energy integration across its global sites. He underscores Covestro’s belief that embracing a circular economy and achieving climate neutrality are crucial for ensuring long-term corporate success.
Olvido Moraleda, President of bp Energía España, describes the agreement as a significant achievement for bp in Spain, enabling the supply of renewable energy via PPA to a key industrial customer like Covestro. This collaboration aligns with bp’s strategy to evolve into an integrated energy company, facilitating the delivery of lower carbon energy solutions to sectors traditionally challenging to decarbonize.
Andrea Firenze, General Manager at Covestro Spain, reaffirms the company’s unwavering commitment to sustainability and efficiency in energy use throughout its value chain. The partnership with bp will enhance the strategic positioning of Covestro’s Tarragona site by ensuring a stable, predictable, and sustainable long-term energy supply.
Jason Tate, Head of European Power Trading and Origination at bp, highlights that this agreement not only underscores bp’s commitment to Spain but also exemplifies bp’s ongoing investment in capabilities to support European commercial and industrial customers in achieving their decarbonization objectives.
Under the terms of the agreement, bp will supply Covestro with a substantial volume of renewable electricity, supported by Guarantees of Origin (GoO), for a decade. The renewable power will be sourced from an operational solar photovoltaic (PV) farm in Teruel, located in the Aragon region of eastern Spain, where bp has secured an offtake agreement.
Looking ahead, Covestro aims to transition its global production to 100 percent renewable energy by the end of 2035. As of the end of 2023, Covestro had already met approximately 16 percent of its global electricity needs from renewable sources.
bp has been an active player in the Spanish natural gas market for over two decades, managing its LNG portfolio and supplying commercial and industrial customers. In the realm of power and renewables, bp continues to expand its portfolio of solar offtake agreements, highlighting renewables as a key growth area within bp’s European trading business.
