Orsted VPPA Allows Covestro to Offset Scope 2 Net Zero Emissions at U.S. Plants
Virtual power purchase deals invested in by polymer material supplier Covestro has offset the company’s energy demand from four of its U.S. production sites.
Covestro’s virtual PPA (VPPA) with renewable developer Orsted allows the customer to declare net-zero Scope 2 electricity emissions through the allocation of renewable energy certificates (RECs). Scope 2 emissions are those indirectly produced greenhouse gases which occur in the use of electricity and power at the company site.
Under VPPAs, the industrial customer does not receive the clean energy directly, but its investment helps fund new projects which connect into the grid and offset its actual energy use with the low-carbon electricity produced.
The facilities in Channelview, Texas, South Deerfield, Massachusetts, New Martinsville, West Virginia and Pittsburgh, Pennsylvania, have achieved net-zero Scope 2 emissions for electricity. While the sites in South Deerfield, New Martinsville, and Pittsburgh have achieved complete net-zero Scope 2 emissions, the remaining credits have been applied to Covestro's Baytown, Texas facility.
"Even in a persistently challenging market environment, we are working towards our goal of climate-neutral production by 2035 and are consistently implementing our strategy of fully aligning ourselves with the circular economy," said Thorsten Dreier, chief technical officer of Covestro, in a statement. "By leveraging renewable energy, we're not just reducing our carbon footprint – we're actively shaping a brighter future for our industry."
The agreement with Orsted, which provides Covestro with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO2 emissions annually. This will enable Covestro to achieve climate neutral production by 2035.
The announcement was followed by Covestro's recent investments across multiple U.S. sites to solidify its commitment to growth and sustainability in the North American market. The German-based company produces polyurethane and polycarbonate raw materials eventually used in many household items.
