To meet that target, the Houston-headquartered olefins and polyolefins group at the end of June signed its first two US power purchase agreements (PPAs) with renewable energy providers.

Together the two agreements represent 216 MW of energy, which the Dutch-domiciled, Texas-managed group said should allow it to generate around 628,000 MWh of clean power annually. As some 15% of its total Scope 1 and 2 greenhouse gas emissions come from electricity consumption, LYB said it will be in a position to cut CO₂ emissions by about 225,000 t annually.

With the increased share of renewables, the chemical producer hopes to reduce its Scope 2 greenhouse gas emissions by about 1.5 million t/y and achieve net zero Scope 1 and 2 greenhouse gas emissions by 2050 in line with the EU Green Deal’s targets.

LYB’s first renewables supply pact, signed with Engie North America – part of  Paris-based Engie – runs for 12 years and covers 100 MW of renewable electricity sourced from the energy company’s new Limestone wind project in Texas, slated to start up this year. From this, it expects to generate around 377,000 MWh of clean power annually, replacing about 135,000 t of CO₂.

The second PPA, agreed with Houston-based Buckeye Partners, covers the supply of 116 MW of renewable electricity from Buckeye’s solar project in Hill County Texas, near Dallas, scheduled to begin operation in the second quarter of 2023. This deal will cover an estimated 251,000 MWh of clean power annually and is calculated to avoid around 90,000 t/y of CO₂.

Peter Vanacker, LYB’s new CEO, whose last stint was with renewable energy specialist Neste, said renewables are an important component of his new employer’s strategy for meeting climate goals, and power purchase agreements its preferred approach to decarbonizing electricity supply.

Author: Dede Williams, Freelance Journalist