ROTTERDAM, Netherlands and HOUSTON, Feb. 2, 2023 - LyondellBasell announced today it has signed the first two European renewable electricity power purchase agreements (PPAs) and two additional PPAs in the United States. The combined additional contracts represent a total of approximately 560 megawatts (MW) of renewable energy capacity. LyondellBasell has now signed eight PPA agreements and achieved over half of its 2030 target to procure a minimum of 50 percent of global electricity from renewable sources. These PPAs will generate over 2.6 million megawatt hours (MWh) of renewable electricity annually and reduce LyondellBasell's scope 2 emissions by nearly 1 million metric tons of carbon emissions, equivalent to the emissions associated with the annual electricity consumption of more than 370,000 homes.
"Decarbonizing the electricity supply through purchasing renewable electricity is crucial to meet LyondellBasell's 2030 and 2050 net zero greenhouse gas emissions targets," said Willemien Terpstra, LyondellBasell Vice President, Decarbonization. "These renewable electricity contracts cover nearly one-third of our 2020 baseline electricity consumption. This demonstrates tangible progress towards our overall objective to reduce our scope 1 and 2 emissions by 42% by 2030, relative to a 2020 baseline."
Virtual PPA for Nordic Projects
LyondellBasell signed a PPA for multiple Nordic projects, with operations expected to begin in the first quarter of 2026. The projects represent approximately 230 MW of renewable energy capacity on LyondellBasell's behalf.
Tarragona PPA Solar Project
The Tarragona Solar Project is the first physical PPA project located at a LyondellBasell production site in Spain. This project is expected to begin operations in the third quarter of 2023 with approximately 5 MW of renewable energy capacity. This electricity will help reduce 17 percent of Scope 2 emissions locally in the production of polypropylene compounds used in automotive applications.
North America Virtual PPA Projects
LyondellBasell signed two additional PPAs in the United States. These projects are located in Texas with approximately 320 MW of renewable energy capacity on LyondellBasell's behalf.
For more information on the company's sustainability targets, click here.
As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn.
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the availability, cost and price volatility of utilities; our ability to meet our sustainability goals, including our ability to reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources and meet our renewable and low carbon energy goals; and the successful construction and operation of the projects described in this release. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2021, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.