LyondellBasell seals 208-MW German solar PPA with Encavis AM

Plastics, chemicals and refining company LyondellBasell (NYSE:LYB) has agreed to procure electricity from a 260-MW solar park to be built by Germany’s Encavis Asset Management AG (Encavis AM) north of Berlin.

The power purchase agreement (PPA) covers 208 MW of the project’s proposed capacity, the unit of German wind and solar farm operator Encavis AG (ETR:ECV) said on Tuesday. During its 12-year term, LyondellBasell will be supplied with roughly 210 GWh of electricity annually, equal to the consumption of roughly 56,500 European homes.

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Set to create one of the largest photovoltaic (PV) parks in Germany, the contracted project will be located in Bartow, in the northeastern state of Mecklenburg-Vorpommern. The construction of its first phase commenced earlier this month and commercial operations are expected to be launched in the summer of 2025. The plant's future output of 270,000 MWh is seen to be enough to supply 96,000 homes per year.

LyondellBasell, ranked by BloombergNEF as the third largest corporate buyer of clean energy in 2023, is aiming to procure at least 50% of its electricity from renewable sources by 2030, based on 2020 levels. With the latest PPA, it will reach more than 90% of that goal, according to the statement.