Environment USA

Covestro Signs First Major Renewable Energy Agreement for Its US Operations


Covestro, a global maker of high-quality polymer materials and their components, has signed a 90 megawatt (MW) virtual power purchase agreement (vPPA) with rated, a Danish sustainable energy pioneer in the US market.

Covestro promotes the expansion of renewable energy projects around the world through various partnerships. This new 15-year arrangement protects a portion of the power generated by the Mockingbird Solar Centre in Lamar County, Texas, and represents Covestro’s first renewable energy agreement in the United States. The vPPA is expected to offset 70,000 tonnes of CO2 emissions per year and lower scope 2 emissions from Covestro’s third largest manufacturing location in Baytown, Texas.

“This significant new announcement builds on Covestro’s existing agreement with rsted and clearly signals our commitment to the use of renewable energy,” stated Covestro CEO Markus Steilemann. “The use of renewable energy to power our facilities is critical to reducing our scope 2 emissions and becoming operationally climate neutral by 2035.”


Covestro established aggressive climate neutrality targets by 2022. Renewable energy, such as wind and solar power, is a crucial lever for achieving these objectives.

“The vPPA with rsted follows our recent announcement of ISCC PLUS certification for our production site in Baytown, Texas,” says Haakan Jonsson, chairman and president of Covestro LLC. “These two initiatives represent our focus on sustainability and the strategic path we have set to reduce our carbon footprint across Covestro’s operations in the United States.” Projects like this help us realise our path to becoming fully circular.”

Climate neutrality, which includes switching to renewable energy, is one concrete step along this path. Covestro is reliant on contracts.