Germany's Covestro strikes world's largest offshore wind PPA

Denmark’s Ørsted A/S (CPH:ORSTED) announced today that German polymer materials supplier Covestro AG (ETR:1COV) has agreed to buy a portion of the electricity generated by the 900-MW Borkum Riffgrund 3 offshore wind complex.

Covestro has entered into a 10-year corporate power purchase agreement (PPA) with Ørsted for a 100-MW portion of this subsidy-free project. According to Ørsted, this is the world's largest offshore wind PPA.

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The contract will become effective from 2025, when the wind farm is expected to be fully commissioned, subject to Ørsted's final investment decision.

"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," said Martin Neubert, Executive Vice President and CEO of Ørsted Offshore.

The Leverkusen-based chemical company said it will use the purchased electricity to supply its three production sites in North Rhine-Westphalia and its plant in Schleswig-Holstein. These facilities make plastics and chemical intermediates for foams, coatings and films, among other products.

Borkum Riffgrund 3 will consist of three parks -- the 420-MW Borkum Riffgrund West 1, 240-MW Borkum Riffgrund West 2 and 240-MW OWP West -- to be built in the German North Sea adjacent to Ørsted's existing offshore wind farms Borkum Riffgrund 1 and Borkum Riffgrund 2.