TotalEnergies, a global energy company, has secured a second renewable Corporate Power Purchase Agreement (CPPA) with LyondellBasell. This new contract involves the supply of 275 MWac (358 MW) of green electricity from TotalEnergies’ utility-scale Cottonwood Bayou and Brazoria Solar farms in Texas.
Details of the Agreements
15-Year CPPA for Brazoria Solar Farm Under this 15-year CPPA, LyondellBasell will procure 125 MWac (163 MW) from TotalEnergies’ Brazoria Solar farm. Located southwest of Houston, the Brazoria Solar farm has a capacity of 325 MW, and commercial operations are set to begin at the end of 2025.
12-Year CPPA for Cottonwood Bayou Solar Plant In continuation of a CPPA signed in 2022, LyondellBasell will obtain 150 MWac (195 MW) from TotalEnergies’ Cottonwood Bayou Solar plant. Situated south of Houston, this project boasts a capacity of 455 MW, with commercial operations scheduled to commence by the end of 2024.
Upside-Sharing Mechanism and Competitive Advantage
Both CPPAs feature an upside-sharing mechanism indexed on merchant prices. This mechanism allows the companies to share potential benefits arising from increased market prices during the contract term. TotalEnergies’ ability to offer competitive renewable electricity is showcased by these agreements, aligning with its strategy to support industry leaders in their decarbonization efforts.
TotalEnergies’ Commitment to Renewables
TotalEnergies is a prominent renewable energy developer in the U.S., with a diverse portfolio, including large-scale solar, storage, and wind projects. By 2025, the company anticipates generating up to 10 GW of renewable power, expanding to over 25 GW by 2030. The recent acquisition of three gas-fired power plants in Texas adds 1.5 GW of flexible power production capacity to its growing portfolio.
Net Zero Transition and Future Plans
Chris Cain, LyondellBasell Senior Vice President for Net Zero Transition Strategy, emphasized the significance of power purchase agreements in reducing greenhouse gas emissions. TotalEnergies continues to pursue its ambition to achieve net-zero emissions by 2050. The company plans to expand its renewable electricity generation to 35 GW by 2025, contributing to a cleaner and sustainable energy future.
Source：businesswire.com
