Plastics, chemicals, and refining company LyondellBasell signed two new Power Purchase Agreements (PPA) in the U.S. with providers TotalEnergies and Industrial Sun, adding 175 MW of solar power to its procured renewable energy portfolio.
According to LyondellBasell, the agreement will bring the company to 89% of its goal to procure at least 50% of electricity from renewable sources by 2030. The target was first announced in 2021, together with other climate commitments, including goals to reduce absolute Scope 1 and 2 emissions by 30% by 2030, and reach net zero emissions across its global operations by 2050. In December 2022, the company raised its Scope 1 and 2 target to a 42% reduction by 2030, and introduced a goal to reduce Scope 3 emissions by 30% by 2030.
Chris Cain, LyondellBasell Senior Vice President for Net Zero Transition Strategy said:
“We are taking decisive steps to reduce our scope 1 and 2 greenhouse gas emissions and power purchase agreements are a critical lever towards meeting our targets.”
The new agreements include a 15-year PPA for 125 MW of renewable electricity sourced from TotalEnergies’ Brazoria Solar project in Brazoria County, Texas. The agreement is expected to generate approximately 300,000 megawatt-hours (MWh) of solar power annually, equivalent to the annual electricity consumption of more than 28,000 American homes. The project is expected to commence operations at the end of 2025. The deal marks the company’s second PPA with TotalEnergies.
Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies, said:
“TotalEnergies is proud to support LyondellBasell on its ambitious climate goals. The signing of this new upside sharing PPA in the U.S. is consistent with our strategy of merchant exposure and will contribute to the objective of profitable growth for our Integrated Power business.”
LyondellBasell also signed a long-term PPA with Industrial Sun to supply 50 MW of renewable electricity from Industrial Sun’s Industrial Bravo solar project in Matagorda County, Texas, to the LyondellBasell Matagorda Complex, which produces high-density polyethylene (HDPE) plastic resins used to manufacture various consumer products. The solar project is expected to commence operations in the first half of 2026.
Wade Gungoll, CEO of Industrial Sun said:
“We are excited to collaborate with LyondellBasell in support of their renewable energy goals. Our utility-scale net-metered industrial solar solution will simultaneously reduce the carbon footprint and operating expenses of LyondellBasell’s Matagorda Complex, which will in turn enhance the long-term prosperity of the facility and support more job creation in Matagorda County. Our unique projects are win-win-wins for the customer, the community, and the energy grid.”