LyondellBasell Signs Purchase Agreements for 216 MW of Solar & Wind Energy in U.S.
Plastics, chemicals, and refining company LyondellBasell announced today the signing of its first two U.S. power purchase agreements, for a total of 216 MW of renewable energy from power producer ENGIE North America and energy company Buckeye Partners.
According to the company, approximately 15% of its total Scope 1 and 2 greenhouse gas (GHG) emissions come from its electricity consumption. The new agreements are expected to generate about 628,000 MWh of clean power annually and enable the company to reduce its CO2 emissions by 225,000 metric tons per year.
The 12-year agreement with ENGIE North America is for 100 MW of renewable electricity sourced from ENGIE’s Limestone wind project in Texas’ Navarro and Limestone counties, which is expected to begin operations later in 2022. The agreement is expected to generate about 377,000 MWh of clean power yearly, equivalent to approximately 135,000 metric tons of CO2.
David Carroll, ENGIE Chief Renewables Officer, said:
“This agreement demonstrates a collaboration to create a path forward that helps address the collective global challenge of climate change. 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.”
The 10-year PPA with Buckeye Partners is for 116 MW of renewable electricity sourced from its Files solar project located outside of Dallas, Texas, which is expected to be operational in 2023. The deal is projected to generate about 251,000 MWh of clean power annually, equivalent to around 90,000 metric tons of CO2.
Todd Russo, Buckeye CEO, said:
“Buckeye is pleased to partner with LyondellBasell on this new power purchase agreement and to support their sustainability goals. This partnership is illustrative of our focus on providing for the increasingly diverse energy needs of our customers, including solar power.”
According to LyondellBasell, today’s agreements support its goal of procuring a minimum of 50% of electricity from renewable sources by 2030. This target was announced in September last year, 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.
Peter Vanacker, LyondellBasell CEO, said:
“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. 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.”