Plastics, chemicals and refining company LyondellBasell (NYSE:LYB) announced on Wednesday that it has contracted a total of 216 MW of wind and solar power generating capacity in the US state of Texas.
The company said it has signed its first two US power purchase agreements (PPAs) – one with Engie North America and one with Buckeye Partners. In total, LyondellBasell will buy some 628,000 MWh of renewable power per year.
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The contract with Engie is for 100 MW of electricity sourced from the Limestone wind project in Navarro and Limestone counties that is expected to start operations late in 2022. In this case, LyondellBasell will be buying about 377,000 MWh annually over a period of 12 years.
Buckeye Partners, on the other hand, will sell to LyondellBasell 251,000 MWh of power annually over ten years from a 116-MW portion of the Files solar project in Hill County outside of Dallas. This solar park is seen to begin operations in the second quarter of 2023.
LyondellBasell seeks to procure at least half of its electricity from renewables by 2030 on the path to achieving net-zero scope 1 and 2 greenhouse gas emissions by 2050. The company estimates that the two new contracts will help it cut its carbon dioxide (CO2) emissions by about 225,000 metric tonnes annually.