LyondellBasell signs two US power purchase agreements with TotalEnergies and Industrial Sun
03 Jan 2024 --- LyondellBasell has signed two power purchase agreements (PPA) in the US, which will bring the company’s total renewable electricity power to 1,366 megawatts (MW) — accounting for 89% of its goal to procure at least 50% of its electricity from renewable sources by 2030.
The company signed a long-term PPA for 125 MW of renewable electricity sourced from TotalEnergies’ Brazoria Solar project in Brazoria County, Texas.
According to LyondellBasell, the 15-year 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.
Operations on the project are planned to commence at the end of 2025. The agreement is the company’s second PPA with TotalEnergies.
“We are taking decisive steps to reduce our scope 1 and 2 greenhouse gas emissions, and power purchase agreements are a critical lever toward meeting our targets,” says Chris Cain, LyondellBasell senior vice president for Net Zero Transition Strategy.
LyondellBasell is aiming for 50% renewable energy by 2030.“These two new agreements help us accelerate the development of clean energy and shift to the use of low carbon energy at our sites.”
Industrial Sun agreement
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.
The facility produces high-density PE resins used to manufacture various consumer products. The project is expected to commence operations in the first half of 2026.
“The signing of this new upside-sharing PPA in the US is consistent with our strategy of merchant exposure and will contribute to the objective of profitable growth for our Integrated Power business,” says Vincent Stoquart, senior vice president of Renewables at TotalEnergies.
LyondellBasell aims to procure a minimum of 50% of electricity from renewable sources by 2030, based on 2020 procured levels. Approximately 15% of the company´s 2020 baseline scope 1 and 2 GHG emissions come from its electricity consumption.
Renewable electricity is an important component of its pathway to net zero scope 1 and 2 emissions by 2050.
“We are excited to collaborate with LyondellBasell in support of their renewable energy goals,” says Wade Gungoll, CEO of Industrial Sun.
“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 for the customer, the community, and the energy grid.”
Edited by Louis Gore-Langton
