power move

LyondellBasell announces renewable energy power purchase agreement with German partner

LYB is building its first industrial-scale catalytic advanced recycling demonstration plant at its site in Germany. Photo via lyondellbasell.com

Houston-based chemical company LyondellBasell has agreed to secure 208 megawatts of renewable energy capacity from a solar park in Germany.

Under the 12-year deal, LyondellBasell will purchase about 210 gigawatt-hours of solar power each year from Germany-based Encavis Asset Management. That’s enough energy to power about 56,500 homes each year.

LyondellBasell aims to purchase at least half of its electricity from renewable sources by 2030. The deal with Encavis will enable LyondellBasell to achieve more than 90 percent of that goal.

A report from BloombergNEF ranks LyondellBasell as the world’s third largest corporate buyer of clean energy, behind Amazon and Meta.

“This latest agreement will accelerate the development and deployment of clean energy across different sectors in Germany,” says Chris Cain, LyondellBasell’s senior vice president for net-zero transition strategy.

Construction of the solar park got underway in March, with completion set for next summer. The park’s total generating capacity for solar power will be 260 megawatts, which is enough to supply electricity to about 96,000 homes per year.

“Leveraging our industry know-how, we are committed to operating the solar park in an environmentally sustainable and economically profitable manner,” says Karsten Mieth, a spokesman for Encavis Asset Management.

Encavis Asset Management is a wholly owned subsidiary of Encavis, a large-scale producer of wind and solar power in Europe.

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A View From HETI

Governor Abbott said he was sending a letter to the Public Utility Commission of Texas requiring it to investigate why restoration has taken so long and what must be done to fix it. Photo via X/Governor Abbott

With around 270,000 homes and businesses still without power in the Houston area almost a week after Hurricane Beryl hit Texas, Gov. Greg Abbott on Sunday said he's demanding an investigation into the response of the utility that serves the area as well as answers about its preparations for upcoming storms.

“Power companies along the Gulf Coast must be prepared to deal with hurricanes, to state the obvious,” Abbott said at his first news conference about Beryl since returning to the state from an economic development trip to Asia.

While CenterPoint Energy has restored power to about 2 million customers since the storm hit on July 8, the slow pace of recovery has put the utility, which provides electricity to the nation’s fourth-largest city, under mounting scrutiny over whether it was sufficiently prepared for the storm that left people without air conditioning in the searing summer heat.

Abbott said he was sending a letter to the Public Utility Commission of Texas requiring it to investigate why restoration has taken so long and what must be done to fix it. In the Houston area, Beryl toppled transmission lines, uprooted trees and snapped branches that crashed into power lines.

With months of hurricane season left, Abbott said he's giving CenterPoint until the end of the month to specify what it'll be doing to reduce or eliminate power outages in the event of another storm. He said that will include the company providing detailed plans to remove vegetation that still threatens power lines.

Abbott also said that CenterPoint didn't have “an adequate number of workers pre-staged" before the storm hit.

Following Abbott's news conference, CenterPoint said its top priority was “power to the remaining impacted customers as safely and quickly as possible,” adding that on Monday, the utility expects to have restored power to 90% of its customers. CenterPoint said it was committed to working with state and local leaders and to doing a “thorough review of our response.”

CenterPoint also said Sunday that it’s been “investing for years” to strengthen the area’s resilience to such storms.

The utility has defended its preparation for the storm and said that it has brought in about 12,000 additional workers from outside Houston. It has said it would have been unsafe to preposition those workers inside the predicted storm impact area before Beryl made landfall.

Brad Tutunjian, vice president for regulatory policy for CenterPoint Energy, said last week that the extensive damage to trees and power poles hampered the ability to restore power quickly.

A post Sunday on CenterPoint's website from its president and CEO, Jason Wells, said that over 2,100 utility poles were damaged during the storm and over 18,600 trees had to be removed from power lines, which impacted over 75% of the utility's distribution circuits.

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