Covestro and bp Ink Long-Term Solar Power Supply Deal in Spain

Covestro and bp have entered into a long-term Power Purchase Agreement (PPA) for renewable energy sourced from a solar power plant in Spain. This 10-year agreement marks a substantial increase in Covestro’s utilization of renewable energy for electricity consumption in Spain, raising the share from less than 10 percent to approximately 30 percent. This move represents a critical stride towards Covestro's goal of achieving operational climate neutrality by 2035.

The agreement expands on Covestro’s previous commitment, initiated in 2022, to power three smaller production facilities in Spain—located in Zona Franca, Barcelona; Parets del Vallés; and Santa Margarida i els Monjos—entirely with renewable electricity. With this new agreement, a significant portion of the energy needs at Covestro's primary production site in Tarragona will also be met through renewable sources. This shift is expected to result in a reduction of approximately 16,000 tonnes of CO2 emissions annually.

Thorsten Dreier, CTO at Covestro, emphasized the significance of their Power Purchase Agreement (PPA) as a pivotal step in advancing their commitment to increasing renewable energy usage across their global sites. He highlighted Covestro's belief that prioritizing a circular economy and achieving climate neutrality is crucial for ensuring the company's sustainable long-term success. Dreier's statement underscored Covestro's proactive approach in leveraging opportunities to enhance environmental sustainability and align their operations with their strategic vision for a more sustainable future.

Olvido Moraleda, president of bp Energía España, emphasized the importance of the agreement as a significant milestone for bp in Spain. This agreement allows bp to supply renewable energy through a Power Purchase Agreement (PPA) to a critical industrial customer. Moraleda highlighted that this partnership with Covestro enables both companies to collaborate in delivering lower carbon energy to a traditionally challenging sector in terms of emissions reduction. This initiative aligns with bp's strategy to transition towards becoming an integrated energy company, emphasizing their commitment to sustainability and supporting industrial sectors in achieving their climate goals.

Covestro has set ambitious climate targets, aiming to transition its global production to 100 percent renewable energy by the end of 2035. As of the close of 2023, Covestro had already met approximately 16 percent of its global electricity requirements from renewable sources.

bp, with over two decades of presence in the Spanish natural gas sector, has been actively managing its LNG portfolio and supplying commercial and industrial (C&I) customers. In the realm of power and renewables, bp is expanding its footprint with a portfolio of solar offtake agreements and renewable power supply, marking a pivotal growth area for bp's trading operations across Europe.