LyondellBasell signs renewable energy PPAs with Engie, Buckeye Partners
The first two US power purchase agreements (PPA) inked by LyondellBasell help the corporation achieve its climate objective of obtaining at least 50% of its electricity from renewable sources by 2030. The combined agreements represent 216 MW of renewable energy, which is estimated to generate approximately 628,000 MWh of clean power annually.
Approximately 15% of LyondellBasell’s total scope 1 and 2 greenhouse gas emissions come from its electricity consumption. These agreements will enable the company to reduce its C02 emissions by approximately 225,000 tonnes/year.
Peter Vanacker, LyondellBasell CEO., commented: “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 has 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 to commence operations late in 2022.
The 12-year agreement is estimated to generate approximately 377,000 MWh of clean power annually, equivalent to around 135,000 tonnes of CO2 or the yearly electricity consumption of more than 35,000 average American homes.
“This agreement demonstrates a collaboration to create a path forward that helps address the collective global challenge of climate change,” said ENGIE Chief Renewables Officer David Carroll. “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.”
LyondellBasell also signed a PPA with Buckeye Partners for 116 MW of renewable electricity sourced from its Files solar project located in Hill County outside of Dallas, Texas. The solar farm is expected to begin operations in the second quarter of 2023.
The 10-year agreement is estimated to generate approximately 251,000 MWh of clean power annually, equivalent to around 90,000 tonnes of CO2 or the yearly electricity consumption of more than 23,300 average American homes.
“Buckeye is pleased to partner with LyondellBasell on this new power purchase agreement and to support their sustainability goals,” said 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’s climate-related goals support the ambitions of the Paris Agreement and the transition to a low-carbon economy. By procuring at least half of its electricity from renewable sources by 2030, LyondellBasell estimates the company’s scope 2 greenhouse emissions will be reduced by approximately 1.5 million tonnes. LyondellBasell’s renewable energy goal supports its commitment to achieve net zero scope 1 and 2 greenhouse gas emissions by 2050.
