SUSTAINABLE SPOTLIGHT

Covestro Reaches Net-Zero Scope 2 Milestone

March 18, 2025

Four of Covestro's sites in the U.S., including the company’s North American headquarters in Pittsburgh, PA, have achieved net-zero scope 2 electricity emissions through a virtual power purchase agreement (vPPA) with leading renewable energy provider Ørsted. The first of its kind for Covestro globally, the agreement accounts for an annual reduction of approximately 90,000 tons of CO2 emissions from the operations of Covestro in the U.S..

 “Scope 2 emissions, also known as indirect emissions from the generation of purchased energy, are created when a supplier produces the steam and electricity that we consume at our sites,” said Alison Thomas, manager, Inorganics and Energy Procurement, North America. “Through the vPPA with Ørsted, we are contracted for 90 megawatts of renewable energy produced at the company’s new Mockingbird Solar Center in Texas.”

Half of the RECs are applied to Covestro's locations in Channelview, Texas; South Deerfield, Massachusetts; New Martinsville, West Virginia; and Pittsburgh, Pennsylvania. This enables Channelview to achieve net-zero Scope 2 emissions for electricity, while the other three locations have achieved it for all energy (third party electricity and steam). The remaining RECs will be applied to Baytown, reducing the Texas.

For Covestro’s Chief Technology Officer, Thorsten Dreier, this is another important step on the way to a circular economy: "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," said CTO Thorsten Dreier. “By leveraging renewable energy, we're not just reducing our carbon footprint – we're actively shaping a brighter future for our industry.”

The Mockingbird Solar Center can produce 468 megawatts of electricity annually, which is enough to power 80,000 homes and businesses. Covestro's 15-year agreement accounts for around 19 percent of that energy, helping support the growth of renewables in the region while moving Covestro closer to its goal of climate neutral production by 2035.

"Our partnership with Ørsted is a prime example of how collaboration and innovation can drive meaningful change in our industry," says Samir Hifri, chairman and president of Covestro LLC. "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 U.S."

 “This new way of sourcing renewable energy is a really exciting milestone for Covestro,” said Thomas. “We now have a great tool that can make a big impact from a sustainability perspective. We’re already looking at different options we have in the region and are developing plans for the next project.”

Covestro’s headquarters is situated along interstate 376 in Robinson Township, PA.