In a significant move towards sustainable energy, LyondellBasell (NYSE: LYB) has revealed a power purchase agreement (PPA) with Lightsource BP. Under the terms of the deal, LyondellBasell secures a substantial 149 megawatts (MW) of renewable electricity capacity from Lightsource BP’s solar project in Spain. This collaboration marks a milestone in the push for clean energy solutions.
Commencing in 2026, this 10-year PPA will see Lightsource BP annually deliver around 284,000 megawatt-hours (MWh) of solar power to LyondellBasell. To put this into perspective, the electricity generated will be equivalent to the annual consumption of approximately 78,000 European households. Importantly, this agreement propels LyondellBasell towards achieving a remarkable 78% of its total renewable electricity goal.
LyondellBasell’s Senior Vice President for Net Zero Transition Strategy, Chris Cain, emphasized the significance of this partnership, stating, “We are taking decisive steps to reduce our absolute scope 1 and 2 greenhouse gas emissions while creating solutions for everyday sustainable living. Solar power purchase agreements accelerate the development of clean energy and are a critical lever in our emissions reduction efforts.”
A substantial portion, approximately 15%, of the company’s 2020 baseline scope 1 and 2 greenhouse gas emissions is attributed to its electricity consumption. This partnership aligns with LyondellBasell’s ambitious goal to procure a minimum of 50% of its electricity from renewable sources by 2030, based on 2020 levels, as part of its pathway to achieving net zero emissions by 2050.
Notably, this agreement represents a significant milestone for Lightsource BP, being their first cross-border corporate PPA signed in Spain. Furthermore, Lightsource BP is currently working towards the development of over 1 gigawatt (GW) solar projects, reinforcing its commitment to expanding the renewable energy landscape.
In line with Lightsource BP’s dedication to environmental stewardship and biodiversity conservation, the solar project in Spain will incorporate various environmental measures. These include the renaturation of the area with native species and the creation of refuges for the local bird population, ensuring the integration of the project with the local ecosystem.
Director of Power Markets for Europe at Lightsource BP, Zosia Riesner, expressed enthusiasm about the partnership, stating, “We are delighted to have been selected by LyondellBasell as a partner on their greenhouse gas emission reduction journey. We take immense pride in our ability to offer tailored and customized solutions to our customers while leveraging Lightsource BP’s global reach to offer additional and innovative structures through our contracts. Our continued investment in growing our pipeline of projects across Spain provides exciting opportunities for collaborations like this in the near future.”
Lightsource BP is currently advancing over 10 gigawatts (GW) of utility-scale solar projects across Europe at different stages of development, offering corporations and utilities the opportunity to significantly reduce their greenhouse gas emissions associated with electricity supply.
LyondellBasell received advisory support for this transaction from Schneider Electric.