LyondellBasell, a Houston-based plastics, chemicals and refining company, announced this week the signing of its first two power purchase agreements (PPAs) in the United States, with the goal of procuring at least 50% of its electricity from renewable sources by 2030.
The combined agreements total 216 MW of renewable energy, which is expected to provide roughly 628,000 MWh of clean electricity each year.
LyondellBasell aims to achieve net zero in its Scope 1 and 2 greenhouse gas emissions by 2050. Electricity usage currently accounts for approximately 15% of the company’s total Scope 1 and 2 greenhouse gas emissions, and the agreements will allow it to reduce its carbon dioxide emissions by approximately 225,000 metric tonnes per year.
LyondellBasell predicts that by buying at least half of its electricity from renewable sources by 2030, the company’s scope 2 greenhouse emissions will be decreased by roughly 1.5 million metric tonnes.
LyondellBasell signed an agreement with ENGIE North America for 100 MW of renewable energy generated by its new Limestone wind farm in Texas’ Navarro and Limestone counties.
The plant is currently under construction and is expected to be operational in late 2022. The initial delivery of the 264 blades that comprise 88 turbines have commenced.
The 12-year agreement is expected to generate around 377,000 MWh of clean power per year, which is comparable to approximately 135,000 metric tonnes of carbon dioxide or the annual electricity usage of more than 35,000 average American houses.
LyondellBasell also inked a deal with Buckeye Partners for 116 MW of renewable energy from the Files solar project in Hill County outside of Dallas, which is set to start operations in the second quarter in 2023.
The 10-year agreement is expected to create around 251,000 MWh of clean power per year, which is comparable to approximately 90,000 metric tonnes of carbon or the annual electricity usage of more than 23,300 average American houses.
According to CEO Peter Vanacker, renewable energy is critical to reaching the company’s net zero target, and power purchase agreements are their preferred method of decarbonizing 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,” he added.