The agreement follows Covestro's announcement in 2022 that its three smaller production sites in Spain - in the Zona Franca in Barcelona, Parets del Vallés and Santa Margarida i els Monjos - are already powered 100 percent by electricity from renewable sources. With the new contract, a significant part of the electricity consumption of the main production site in Tarragona can now also be covered by renewable sources, enabling Covestro to reduce its CO2 emissions by around 16,000 tons per year.
“With the supply agreement, we are demonstrating that we at Covestro are taking every opportunity to consistently increase the share of energy from renewable sources at our sites worldwide,” says Thorsten Dreier, Chief Technology Officer at Covestro. “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.”
More stable, predictable and sustainable energy supply
Olvido Moraleda, President of bp Energía España, said: “This agreement is a significant milestone for bp in Spain, allowing us to supply long-term renewable energy to an important industrial customer through a power purchase agreement. bp and Covestro are working together under the agreement to supply a traditionally difficult-to-decarbonize sector with lower-emission energy as part of bp's strategy to become an integrated energy company.”
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Andrea Firenze, General Manager at Covestro Spain, said: “Commitment to sustainability is an indispensable part of everything we do. And with this agreement, we are taking another step on our journey to make energy use as efficient and sustainable as possible throughout our value chain. The alliance with bp will further enhance the strategic positioning of our Tarragona site by providing a more stable, predictable and, above all, sustainable long-term energy supply.”
Renewable electricity from an existing solar park in Teruel
Jason Tate, Head of European Power Trading and Origination at bp, said: “This agreement not only underlines bp's commitment to Spain. It is an example of how bp continues to invest in developing our expertise and capabilities to help commercial and industrial customers in Europe achieve their decarbonization goals.“
Under the terms of the power purchase agreement, bp will supply Covestro with a high double-digit GWh volume of electricity from renewable sources over a 10-year period, supported by an equivalent volume of Guarantees of Origin (GOs). The current plan is to source the renewable energy from an existing solar photovoltaic (PV) farm in Teruel in the Aragon region of eastern Spain, with which bp already has a purchase agreement.
The MDI plant in Tarragona benefits from the power purchase agreement
Covestro is aiming to convert its production to 100% renewable energy by the end of 2035 as part of its climate targets. At the end of 2023, Covestro covered around 16% of its global electricity needs from renewable sources.
bp has been active in the Spanish natural gas market for more than 20 years, through the management of its LNG portfolio and supply to industrial and commercial customers. In power and renewables, bp manages a portfolio of solar power off-takes and also supplies renewable energy, a key growth area for bp's trading business in Europe. (hcn)
