LyondellBasell has signed its first two U.S. power purchase agreements (PPA) supporting the company’s climate goal to procure a minimum of 50% of electricity from renewable sources by 2030. The combined agreements are estimated to generate approximately 620,000 MWh of clean energy annually.
Approximately 15% of LyondellBasell’s total scope 1 and 2 greenhouse gas emissions come from its electricity consumption. These agreements will allow the company to reduce its carbon dioxide emission by approximately 225,000 metric tonnes annually.
“Creating a better future for the next generation is important to us, which is one reason we are focused on delivering on our climate goal to achieve net zero emissions from our global operations,” says Peter Vanacker, LyondellBasell’s CEO. “Renewable energy is an important component for how we will get there, and power purchase agreements are our preferred approach to decarbonizing our electricity supply. These strategic projects propel us forward in greenhouse gas emissions reduction, but they also provide scalability and support investment in new renewable energy capability.”
LyondellBasell and Buckeye Partners signed a PPA for 116 MW of electricity from its Files solar plant in Hill County, Texas. The solar farm will be operational by the end of the second quarter in 2023. The agreement will generate approximately 251,000 MWh clean power annually over a 10-year period.
“Buckeye is pleased to partner with LyondellBasell on this new power purchase agreement and to support their sustainability goals,” comments Buckeye CEO Todd Russo. “This partnership is illustrative of our focus on providing for the increasingly diverse energy needs of our customers, including solar power.”
LyondellBasell also signed a PPA with ENGIE North America (ENGIE) for 100 MW of renewable electricity sourced from ENGIE’s new Limestone wind project in Texas’ Navarro and Limestone counties. The project is expected start operations in 2022. The 12-year agreement will generate approximately 377,000 MWh clean power annually.
“This agreement demonstrates a collaboration to create a path forward that helps address the collective global challenge of climate change,” states David Carroll, ENGIE’s chief renewables officer. “We are particularly honored to work with LyondellBasell on their first PPA agreement which will deliver steady economic and environmental value in the long run for both parties.”