Expected to come into force in 2025, the PPA is claimed to be one of the largest corporate offtake agreements for offshore wind in Germany
Danish energy giant Ørsted has signed a 10-year corporate power purchase agreement (PPA) with German chemicals specialist Covestro to sell 100MW of clean electricity generated from its planned Borkum Riffgrund 3 offshore wind farm.
Based in Leverkusen, Germany, Covestro produces chemicals for polycarbonate plastics. The offshore wind farm is expected to be fully commissioned in 2025, subject to the final investment decision taken by Ørsted.
The power sold to Covestro will be enough to cover the electricity demand of 300,000 people.
ovestro CEO Markus Steilemann said: “By purchasing green electricity, we are underpinning our comprehensive sustainability strategy and preparing ourselves for the expected rise in energy prices and CO2 costs. We assume that this will enable us to inspire and motivate our customers and corresponding value chains towards sustainable industrial production.”
“At the same time, we also hope that the cooperation with Ørsted will stimulate the accelerated expansion of renewable energy in Germany. Without green electricity, the chemical industry, but also industry as a whole, cannot make its contribution to ensuring that Germany becomes largely greenhouse gas-neutral by the middle of the century, as specified in the climate protection plan.”
The purchase of 100MW from the wind farm’s 900MW total capacity for 10 years by Covestro is claimed to be one of the largest corporate PPAs for offshore wind in Germany.
Ørsted offshore executive vice president and CEO Martin Neubert said: “Our agreement with Covestro is the first tangible step to secure stable revenues for part of the power generated by Borkum Riffgrund 3 which will be built and operated without subsidies.”
“At the same time, this corporate PPA shows that offshore wind can be a reliable source of green power delivering the large volumes required by energy-intensive industrial players. With this agreement, Ørsted and Covestro support the German energy transition and the continued build-out of renewable energy which is urgently needed to reduce carbon emissions in the German industrial sector.”
Borkum Riffgrund 3 is located in the German North Sea, adjacent to Ørsted’s existing offshore wind farms Borkum Riffgrund 1 and Borkum Riffgrund 2.
Borkum Riffgrund 3 consists of three individual wind projects
Borkum Riffgrund 3 comprises three offshore wind projects which were originally awarded to the Danish company in 2017 and 2018 auctions under the names of Borkum Riffgrund West 1 (420MW), Borkum Riffgrund West 2 (240MW), and OWP West (240MW). The three projects were renamed as Borkum Riffgrund 3 this September.