Shell Argentina inks PPA to buy green power for hydrocarbons project

Shell Argentina, a unit of oil-and-gas major Shell Plc (LON:SHEL), has signed a power purchase agreement (PPA) to procure renewable energy to satisfy the demand of its development blocks in Argentina’s Vaca Muerta shale basin.

Under this PPA, Argentine power company Genneia will supply Shell with electricity generated by its portfolio of wind and solar farms. The seven-year contract will begin on May 1, 2024, Genneia said on in an announcement on Friday.

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Genneia recently commissioned a 60-MW solar farm in San Juan province, raising its installed wind and solar capacity to just over 1 GW in the country.

The PPA with Shell is facilitated by Argentina’s purchase mechanism called Mercado a Termino de Energias Renovables (MATER), which enables large private power consumers to freely negotiate their contracts with clean electricity generators.