Covestro to buy solar power from Ørsted for site in Texas

German polymer materials maker Covestro AG (ETR:1COV) has struck a virtual power purchase agreement (vPPA) with the US subsidiary of Denmark’s Ørsted A/S (CPH:ORSTED) to source 90 MW of solar energy for its site in Baytown, Texas.

Covestro announced the 15-year contract on Monday, saying that the purchased electricity will come from the 471-MW Mockingbird Solar Center in Lamar County once it begins operation in late 2024. The vPPA, which is the German company’s first in the US, represents almost 20% of the solar plant’s total capacity, the statement notes.

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Edison Energy assisted Covestro with the brokering of the agreement for the vPPA.

The polymer materials producer said it expects to raise its global renewable energy share to 16-18% this year from 12% at the end of 2022.