LyondellBasell's Renewable Energy Push: A Step Towards Net-Zero

LyondellBasell, a global leader in the chemical industry, has taken a significant stride towards its net-zero emissions goal by signing two substantial power purchase agreements (PPAs) in Europe. These agreements, with Vattenfall and wpd, will provide the company with long-term price certainty and help stabilize energy costs, making renewable energy more attractive compared to fluctuating fossil fuel prices. The PPAs will also contribute to LyondellBasell's commitment to reducing greenhouse gas emissions and supporting its customers' ability to meet their CO2 reduction objectives.

Under the 15-year agreement with Vattenfall, LyondellBasell will secure 450 gigawatt-hours (GWh) annually of offshore wind energy to support its circular and low-carbon solutions in Germany. This includes powering the company's MoReTec-1 plant in Wesseling, which is designed to recycle the amount of plastic packaging waste generated by over 1.2 million German citizens per year using LyondellBasell's proprietary technology. The agreement with wpd secures 79 GWh annually of onshore wind power from the Licata project in Sicily, Italy, for a 10-year period beginning in 2026. This renewable and low-carbon electricity will support LyondellBasell's production site and research center in Ferrara, Italy, which is the world's largest for Ziegler-Natta catalyst development and production.

Both power agreements help integrate renewable energy into the grid, improving infrastructure and reliability, and demonstrate LyondellBasell's commitment to being a value-oriented leader throughout the industry's energy transition. By procuring renewable electricity, LyondellBasell can reduce its scope 2 emissions, which are indirect emissions from the consumption of purchased electricity, heat, or steam. These PPAs are expected to reduce the company's scope 2 emissions by nearly 1 million metric tons of carbon emissions annually, equivalent to the emissions associated with the annual electricity consumption of over 370,000 homes.



LyondellBasell's commitment to renewable energy is a crucial component of its pathway to net-zero scope 1 and 2 emissions by 2050. The company has set a target to procure a minimum of 50% of its global electricity from renewable sources by 2030, based on 2020 procured levels. With these two new PPAs, LyondellBasell has now signed eight PPA agreements, representing a total of approximately 560 MW of renewable energy capacity. These agreements will generate over 2.6 million MWh of renewable electricity annually, bringing the company closer to its 2030 renewable energy target.



In addition to reducing its own emissions, LyondellBasell's investment in renewable energy supports its customers' ability to meet their CO2 reduction objectives. The company's diverse global portfolio of renewable energy not only reduces its carbon footprint but also supports its customers' sustainability goals. By procuring renewable electricity, LyondellBasell is taking decisive steps to reduce its scope 1 and 2 greenhouse gas emissions and power purchase agreements are a critical lever towards meeting its targets.

In conclusion, LyondellBasell's renewable energy push, exemplified by its recent PPAs with Vattenfall and wpd, is a significant step towards achieving its net-zero emissions goal by 2050. These agreements demonstrate the company's commitment to reducing greenhouse gas emissions, supporting its customers' sustainability objectives, and integrating renewable energy into the grid. As the global chemical industry leader, LyondellBasell is setting an example for other companies to follow in the transition to a low-carbon economy.