Inside Covestro & Ørsted's Renewable Energy Masterclass

Companies around the world, regardless of their sector, are taking big steps in an attempt to achieve net zero.

Naturally, each company's strategy for decarbonisation is different. Those with large supply chains often have the largest carbon footprints, so their strategies have to be more ambitious.

In the polymer manufacturing industry, Covestro is one of the standout companies when it comes to the pursuit of net zero.

To achieve its goals, Covestro has teamed up Danish energy company Ørsted to power four of its US sites entirely with renewable electricity.

Ørsted and Covestro's collaboration

Thanks to a virtual Power Purchase Agreement (vPPA), Covestro has secured access to 90 megawatts (MW) of renewable energy, chiefly sourced from the Mockingbird Solar Center in Texas.

This agreement has facilitated a substantial reduction in CO2 emissions, contributing to a cleaner, greener environment.

As a result, the company’s production sites at South Deerfield, New Martinsville, and Pittsburgh have achieved net zero Scope 2 emissions for electricity use.

"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," says Thorsten Dreier, CTO of Covestro.

"Our partnership with Ørsted is a prime example of how collaboration and innovation can drive meaningful change in our industry," explains Samir Hifri, Chairman and President of Covestro. 

"We're proud to be at the forefront of sustainable practices in the chemical sector and look forward to continuing to execute our strategy to grow sustainably in the US."

Setting ambitious sustainability goals

So, what exactly are Covestro's goals?

The manufacturing giant intends to achieve net zero Scope 1 and 2 emissions by 2035 net zero Scope 3 emissions by 2050.

Covestro has also expressed its commitment to improving the living conditions of 10 million people in under-served markets by 2025, as well as a commitment to increasing the proportion of women in its workforce to at least 40% by 2029 across all employee categories.

Another key focus for Covestro is circularity: a principle which tries to reduce waste by feeding disused products or wasted energy back through the supply chain.

The company also targets a significant reduction in specific primary energy consumption at all its material production sites by 2030. Collaborations with providers like Ørsted are at the root of these goals.

The role of Ørsted in advancing sustainability

From its origins in the oil and gas sector, Ørsted has transformed into a beacon of sustainability, becoming the leading producer of offshore wind energy and ranking as the world’s most sustainable energy company.

This transition showcases Ørsted's commitment to sustainable development via strategic investments in various forms of renewable energy and active reduction in offshore wind technology costs.

Ørsted’s strategic efforts include partnering with Vestas for low-carbon steel production for wind turbine towers, collaboratively achieving up to 70% reduction in emissions.

Additionally, it has ventured into sustainable cables production for the Hornsea 3 offshore wind farm, cutting emissions from high-voltage power cables by nearly half.

"We want to share what we’ve learnt, from our decision to move away from an unsustainable business model based on fossil fuels, to the action we took to build a truly green business — and the benefits and opportunities it's created for us,” the company says in its communications.

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