Energy giant Chevron announced today an agreement with Algonquin Power & Utilities Corp. to co-develop renewable power projects that will provide electricity to strategic assets across Chevron’s global portfolio. Chevron anticipates it will generate more than 500 megawatts (MW) of its energy needs – equivalent to the energy used to power 400,000 U.S. households for a year – from renewable sources under the 4-year deal.
Allen Satterwhite, President of Chevron Pipeline & Power, said:
“Chevron intends to lead in the future of energy by developing affordable, reliable and ever-cleaner energy. This agreement advances Chevron’s commitment to lower our carbon footprint by investing in renewable power solutions that are reliable, scalable, cost efficient, and directly support our core business.”
Arun Banskota, Chief Executive Officer of Algonquin, said:
“This partnership leverages Algonquin’s technical and operational expertise in renewable power with Chevron’s scale, land, and local knowledge to enable faster, more cost-effective cleaner energy solutions. Continuing to invest in renewable energy solutions is fundamental to our business strategy. By working with sustainability champions like Chevron, we maximize the positive impact of the low carbon technologies we offer to communities across the U.S. and Canada, and internationally.”
According to the agreement, construction of renewable power projects will begin in 2021, located on land held by Chevron. Projects to be powered through the agreement include Chevron’s operations in the Permian Basin in the U.S., as well as projects in Argentina, Kazakhstan and Western Australia. Chevron and Algonquin will jointly co-own and co-develop the projects, and Chevron will purchase electricity from the projects through power purchase agreements (PPAs).