The ten-year contract is the first by a "major chemical company in Germany", according to Ørsted.
Ørsted plans to execute the 900MW Borkum Riffgrund 3 project without state support, so securing an off-take deal early in the project’s development will increase the business case for the site.
The project is expected online in 2025, and the ten-year PPA will also come into effect that year, subject to a final investment decision by the Danish developer.
BR3 was originally three separate sites, awarded to Ørsted in 2017 and 2018: Borkum Riffgrund West 1, Borkum Riffgrund West 2 and OWP West. Ørsted decided to combine the projects into one earlier in 2019 to make the most of project synergies and scale.
"Our agreement with Covestro is the first tangible step to secure stable revenues for part of the power generated by Borkum Riffgrund 3," said Martin Neubert, offshore CEO at Ørsted.
Both Ørsted and Covestro said similar PPAs were required to help increase the levels of renewable energy generation in Germany.