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Covestro
OrganisationDE

Covestro

German specialty chemicals company (spun off from Bayer) operating high-energy-intensity European plants.

Last refreshed: 22 May 2026 · Appears in 1 active topic

Key Question

How is Germany's EUR 62-68 per MWh electricity floor threatening Covestro's chemical plants?

Timeline for Covestro

#1118 May

Operated at 62-68% capacity utilisation

European Energy Markets: Chemicals 62-68% as the new running floor
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Common Questions
What does Covestro make and why is it affected by high energy prices?
Covestro makes polycarbonate and polyurethane precursors (MDI and TDI) used in automotive and construction. Continuous-process polymer production cannot pause when power prices spike; the EUR 62-68/MWh CCGT-set floor directly raises its production costs.Source: european-energy-markets briefing
Who owns Covestro now?
Covestro was acquired by ADNOC, the Abu Dhabi National Oil Company, in 2024 after a EUR 11 billion takeover. It was previously a Bayer spinoff listed on the Frankfurt Stock Exchange.Source: Covestro / ADNOC official
Is European chemical production at risk because of high electricity prices?
Yes. German chemical producers including Covestro are operating with a EUR 62-68/MWh power cost floor set by gas-fired generation, making continuous-process production significantly more expensive than in Asia or the US.Source: european-energy-markets briefing

Background

Covestro is among the energy-intensive German chemical producers cited in the EUR 62-68/MWh power cost floor analysis in the european-energy-markets briefing. Continuous-process polymer production at sites like Leverkusen cannot pause when CCGT-set power prices spike; the floor sets a structural competitiveness threshold against Asian and US rivals.