TotalEnergies has signed a second CPPA with chemical firm LyondellBasell to supply a combined 358MW of green electricity from its utility-scale Cottonwood Bayou and Brazoria Solar farms in Texas.
Through the newly signed 15-year deal, LyondellBasell will offtake 163MW from TotalEnergies’ 325MW Brazoria Solar farm, located south-west of Houston with commercial start-up planned for end of 2025.
The oil and gas giant has also signed a 12-year CPPA with LyondellBasell to offtake 195MW from TotalEnergies’ Cottonwood Bayou Solar plant, a project located south of Houston, with a capacity of 455MW and a commercial start-up planned for end of 2024.
The two agreements are indexed on merchant prices through an upside-sharing mechanism, under which the companies share any potential upside arising from increased market price over the contract term, TotalEnergies said.
They follow other CPPAs TotalEnergies signed with Amazon and Saint-Gobain in the US, demonstrating its ability to provide competitive renewable electricity to support these industry leaders’ decarbonization goals, it added.
Senior vice president, renewables at TotalEnergies Vincent Stoquart said: “TotalEnergies is proud to support LyondellBasell on its climate goals.
“The signing of these new upside sharing CPPAs in the United States is consistent with our strategy to take merchant exposure and will contribute to the objective of profitable growth for our Integrated Power business.”
LyondellBasell senior vice president for net zero transition strategy Chris Cain added: “We are taking decisive steps to reduce our scope 1 and 2 greenhouse gas emissions and power purchase agreements are a critical lever towards meeting our targets.
“These agreements with TotalEnergies help us accelerate the development of clean energy and shift to use low carbon energy at our sites.”