LyondellBasell has signed its first two US power purchase agreements (PPA) as it aims to procure a minimum 50% of electricity from renewable sources by 2030.
The combined agreements represent 216MW of renewable energy, which is estimated to generate approximately 628,000MWh of clean power annually.
Approximately 15% of LyondellBasell's total scope 1 and 2 greenhouse gas emissions come from its electricity consumption and these agreements will enable the company to reduce its carbon dioxide emissions by approximately 225,000 metric tons annually.
CEO Peter Vanacker said: "Renewable energy is an important component for how we will get there (net zero), and power purchase agreements are our preferred approach to decarbonising 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."
ENGIE Limestone Wind project to start later this year
LyondellBasell signed a PPA with ENGIE North America (ENGIE) for 100MW of renewable electricity sourced from its new Limestone wind project in Texas' Navarro and Limestone counties. The project is expected to commence operations late in 2022.
Construction is underway and initial deliveries of the 264 blades that make up the 88 turbines have begun (pictured), each capable of producing 3.4MW.
The 12-year agreement is estimated to generate approximately 377,000 MWh of clean power annually, equivalent to around 135,000 metric tons of carbon dioxide 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 honoured to work with LyondellBasell on their first PPA agreement which will deliver steady economic and environmental value in the long run for both parties."
Buckeye Files solar project aims for 2023 launch
LyondellBasell also signed a PPA with Buckeye Partners for 116MW of renewable electricity sourced from its Files solar project located in Hill County outside of Dallas, which is expected to begin operations in Q2 2023.
The 10-year agreement is estimated to generate approximately 251,000MWh of clean power annually, equivalent to around 90,000 metric tons of carbon dioxide 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 1.5mn metric tons.
LyondellBasell's renewable energy goal supports its commitment to achieve net zero scope 1 and 2 greenhouse gas emissions by 2050.
Consortium targets US solar opportunities
The AES Corporation, Clearway Energy Group, Cypress Creek Renewables, and D. E. Shaw Renewable Investments (DESRI), recently formed the US Solar Buyer Consortium to support expansion of the domestic solar supply chain and drive growth of the American solar industry.
The Consortium has launched a competitive RFP to search for qualified manufacturers who are aligned with its goals and can commit to a long-term strategic partnership to supply up to 7GW of solar modules per year starting from 2024.
It believes an American-made solar industry has the potential to create over 250,000 new permanent jobs and over 50,000 new construction jobs by 2035.