TotalEnergies has entered into a second Corporate Power Purchase Agreement (CPPA) with LyondellBasell, a chemical firm, to supply a combined 358MW of green electricity from its utility-scale Cottonwood Bayou and Brazoria Solar farms in Texas.
The 15-year deal includes LyondellBasell offtaking 163MW from TotalEnergies' 325MW Brazoria Solar farm, set to commence commercial operations at the end of 2025. Additionally, a 12-year CPPA covers 195MW from TotalEnergies' Cottonwood Bayou Solar plant, with a 455MW capacity and a planned commercial start-up at the end of 2024.
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The agreements, indexed on merchant prices with an upside-sharing mechanism, involve the sharing of potential upside resulting from increased market prices over the contract term. TotalEnergies highlighted these agreements as a demonstration of its capability to provide competitive renewable electricity, supporting industry leaders like Amazon and Saint-Gobain in their decarbonization goals through previous CPPAs in the US.
Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies, expressed pride in supporting LyondellBasell on its climate goals, emphasizing the consistency of these new CPPAs with TotalEnergies' strategy and its contribution to the objective of profitable growth for the Integrated Power business.
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LyondellBasell's Senior Vice President for Net Zero Transition Strategy, Chris Cain, noted the critical role of power purchase agreements in reducing greenhouse gas emissions and accelerating the development of clean energy. Cain stated that these agreements with TotalEnergies contribute to the company's efforts to shift towards low-carbon energy usage at its sites.
