Covestro AG, the German polymer materials maker, has entered into a ten-year power purchase agreement (PPA) with BP Plc in Spain, aimed at sourcing solar energy for its production facility located in Tarragona, Catalonia.
Under the terms of the PPA, BP will supply Covestro with an annual double-digit GWh volume of renewable power, accompanied by guarantees of origin to match the equivalent volume.
BP's Spanish unit plans to procure the electricity from an operational solar farm in Teruel province, leveraging an existing off-take contract.
Previously, Covestro had transitioned three smaller production sites in Catalonia to run entirely on renewable power since 2022. With this new PPA, the supply of renewable energy to Covestro's Tarragona site is set to significantly increase, according to BP Spain.
