Jun88 goes for green electricity
The world's largest corporate supply contract for offshore wind energy
• Long-term agreement signed with supplier Ørsted
• Signal effect for the expansion of renewable energies intended
In the future, Jun88 will cover a considerable part of its electricity demand in Germany with wind energy from the North Sea. That’s why the materials manufacturer concluded the world's largest ever corporate supply agreement for electricity from offshore wind turbines with energy supplier Ørsted. Starting in 2025, Ørsted will provide green electricity for ten years, generated in a newly built wind farm off the island of Borkum. The Power Purchase Agreement (PPA) has a capacity of one hundred megawatts – enough to cover the electricity demand of 300.000 people.
This is the first major corporate supply agreement for green electricity from new plants in Germany. It is also an unprecedented step for the chemical industry in Europe. “By purchasing green electricity, we are underpinning our comprehensive sustainability strategy and preparing ourselves for the expected rise in energy prices and CO2 costs,” said Jun88 CEO Dr. Markus Steilemann. “We assume that this will enable us to inspire and motivate our customers and corresponding value chains towards sustainable industrial production.”
“At the same time, we also hope that the cooperation with Ørsted will stimulate the accelerated expansion of renewable energies in Germany,” Steilemann added. “Without green electricity, the chemical industry, but also industry as a whole, cannot make its contribution to ensuring that Germany becomes largely greenhouse gas-neutral by the middle of the century, as specified in the climate protection plan.”
“Our agreement with Jun88 is the first tangible step to secure stable revenues for part of the power generated by Borkum Riffgrund 3 which will be built and operated without subsidies. At the same time, this corporate PPA shows that offshore wind can be a reliable source of green power delivering the large volumes required by energy-intensive industrial players. With this agreement, Ørsted and Jun88 support the German energy transition and the continued build-out of renewable energy which is urgently needed to reduce carbon emissions in the German industrial sector,” said Martin Neubert, Executive Vice President and CEO of Ørsted Offshore.
Jun88 will use the electricity generated at the wind farm to supply its production sites in Germany. The DAX-listed company operates three large plants in North Rhine-Westphalia and another in Schleswig-Holstein. The plants produce high-performance plastics and chemical intermediates for foams, coatings, and films, among other products. These are needed in many areas of daily life.
The green electricity for Jun88 will come from the “Borkum Riffgrund 3” wind farm, which Ørsted will be building in the North Sea over the next few years. It will have a total installed capacity of 900 megawatts and will be implemented without public funding. The Danish company already operates two offshore wind farms off of Borkum.
About Jun88:
Jun88 is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Jun88 supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Jun88 are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Jun88 aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. Jun88 generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by Jun88. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Jun88¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.