Covestro Signs First Major Renewable Energy Agreement for Its US Operations

• Long-term agreement signed with Ørsted as part of its planned Mockingbird Solar Center in Texas, U.S.
• Covestro’s 90MW share of renewable energy estimated to offset 70,000 tons of CO2 emissions at its Baytown, Texas, site annually, starting in late 2024
• Agreement equivalent to energy used to power more than 15,000 homes

Covestro, a leading manufacturer of high-quality polymer materials and their components, has signed a 90 megawatt (MW) virtual power purchase agreement (vPPA) with Ørsted, a clean energy leader in the U.S. market, headquartered in Denmark.

With various agreements in place, Covestro fosters the growth of renewable energy projects around the world. This newest 15-year agreement secures a portion of power from the Mockingbird Solar Center in Lamar County, Texas, marking Covestro’s first renewable energy agreement in the U.S. The vPPA is estimated to offset 70,000 tons of CO2 emissions annually and will reduce the scope 2 emissions from Covestro’s third largest production site, located in Baytown, Texas.

“This important new announcement builds upon Covestro’s existing agreement with Ørsted and clearly signals our commitment to the use of renewable energy,” said Markus Steilemann, CEO of Covestro. “The inclusion of renewable energy to help power our facilities is a critical component to reducing our scope 2 emissions and becoming operationally climate neutral by 2035.”

Covestro set itself ambitious climate neutrality goals in 2022. One major lever to reach these goals is energy from renewable sources, such as wind and solar power.

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

One concrete measure on this path is climate neutrality, which includes the switch to power from renewable sources. Covestro relies on agreements with power suppliers to facilitate this transition.

“We are thrilled to help facilitate Covestro’s entry into the U.S. renewable energy market with this newly signed virtual power purchase agreement,” said Monica Testa, Head of Origination at Ørsted. “The Mockingbird Solar Center is a unique project that represents both preservation and progress. The clean energy produced by the solar center will help Covestro to decarbonize its operations, while the conservation of rare native tallgrass prairie habitat supports plant and wildlife biodiversity in the region. We’re proud of the important outcomes this project achieves and look forward to our continued partnership with Covestro.”

Edison Energy worked with Covestro to broker the agreement for the vPPA. Ørsted’s Mockingbird Solar Center will produce enough clean energy to power roughly 80,000 homes and is expected to begin operation in late 2024. At that time, Covestro will start executing on the vPPA, which represents nearly 20% of the Mockingbird Solar Center’s capacity.

In December 2019, Covestro concluded a supply agreement for electricity from offshore wind turbines with energy supplier Ørsted. Starting in 2025, Ørsted will provide green electricity for ten years to supply Covestro’s production sites in Germany, generated in a newly built wind farm off the island of Borkum, Germany. At the end of 2022, Covestro had already covered 12 percent of its global energy requirements with electricity from renewable sources. That figure is expected to rise to 16 to 18 percent in 2023.

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Luminy PLA Sustainable Under EU Taxonomy Regulation

TotalEnergies Corbion has announced that its Luminy Polylactic Acid (PLA) bioplastics successfully meet the stringent criteria of the European Union (EU) Taxonomy Regulation on climate change mitigation and adaptation. The assessment can be found in the newly launched whitepaper titled “Planting the Future with PLA,” which details the regulation and delves into more sustainability aspects of biobased materials. The achievement underscores the company’s pivotal role in the global sustainable economy.

The EU Taxonomy Regulation is critical for sustainable innovation because sets a standard for what can be labeled as ‘sustainable’ in business in the European Union. The framework uses six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. The intent of the regulation is to help increase sustainable investment and further drive the implementation of the European Green Deal.

“TotalEnergies Corbion continues to work closely with lawmakers, regulators, and non-governmental organizations as we push to create more sustainable plastic alternatives,” said Maelenn Ravard, the company’s Sustainability and Regulatory Manager. “In addition to compliance with the EU Taxonomy Regulation, our entire line of Luminy PLA is certified 100% biobased according to EN16785 and the USDA biopreferred program. What’s more, our production plant is ISO certified for environmental management, quality, and safety and we follow the regulations set by the World Wildlife Fund’s sugarcane industry organization Bonsucro. We are proud to set this standard for the bioplastics industry moving forward.”

Luminy PLA bioplastics are derived from sugarcane, an annually renewable resource, and are among the few types of bioplastics that are both biobased and biodegradable. As outlined in the “Planting the Future with PLA,” whitepaper, creating a kilogram of PLA requires 1.75m² of sugarcane farmland which captures 1.8kg of CO 2 from the atmosphere as it grows. TotalEnergies Corbion’s entire production capacity requires just 0.08% of arable land in Thailand, where the company produces PLA locally. Simply put, the efficiency of land use combined with the benefits of carbon capture make PLA bioplastics a great option for reducing our global reliance on fossil-based plastics.

TotalEnergies Corbion’s Luminy PLA bioplastics enable businesses all over the world to transition to more sustainable materials without compromising on quality or performance. They provide a viable alternative to conventional plastics, aligning with the EU Taxonomy Regulation’s objectives and supporting the global shift towards a more sustainable future.

www.totalenergies-corbion.com

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