LyondellBasell (LYB) announced the signing of two significant power purchase agreements (PPAs) in Europe, further supporting its commitment to reduce greenhouse gas emissions.
The PPAs offer LYB long-term price certainty, which helps stabilize energy costs and make renewable energy more attractive compared to fluctuating fossil fuel prices.
“Adding these long-term agreements to our portfolio supports price stability to increase the use of renewable energy in a value-accretive way,” said Chris Cain, LYB senior vice president, net zero transition strategy. “Our diverse global portfolio of renewable energy not only reduces our carbon footprint but also supports our customers’ ability to meet their CO2 reduction objectives.”
Under the 15-year agreement with Vattenfall, LYB will secure 450 gigawatt-hours (GWh) annually of offshore wind energy to support LYB’s circular and low-carbon solutions in Germany, including powering the company’s MoReTec-1 plant in Wesseling. The MoReTec-1 plant is the company’s first commercial-scale advanced recycling plant and is designed to recycle the amount of plastic packaging waste generated by over 1.2 million German citizens per year using LYB’s proprietary technology.
LYB also signed a long-term PPA with wpd, securing 79 GWh annually of onshore wind power from the Licata project in Sicily, Italy. The 10-year agreement is expected to begin in 2026 and will help provide a reliable supply of renewable and low-carbon electricity to the region, including LYB’s production site and research center in Ferrara, Italy. The LYB site is the world's largest for Ziegler-Natta catalyst development and production. The polymer manufacturing units at the Ferrara site produce polypropylene and advanced polyolefin resins used in a wide variety of applications including food packaging, medical products and automotive parts.
Both power agreements help integrate renewable energy into the grid, improving infrastructure and reliability and demonstrating the company's commitment to be a value-oriented leader throughout the industry’s energy transition.
