TotalEnergies unveils 275 MW of Texas solar PPAs with LyondellBasell

French energy company TotalEnergies SE (EPA:TTE) has signed a second corporate power purchase agreement (PPA) with LyondellBasell Industries NV (NYSE:LYB), after the one signed at end-2022, and will provide the Dutch chemicals major with a combined 275 MW of solar in Texas.

Under the new contract, LyondellBasell will procure 125 MW, or 163 MW in direct current (DC), from TotalEnergies’ 325-MW DC Brazoria solar farm, which is located southwest of Houston and is planned to come online at the end of 2025.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

The 2022 PPA is for a 150-MW (195 MW DC) portion of TotalEnergies’ 455-MW DC Cottonwood Bayou solar plant, which is located south of Houston and planned to go live at the end of 2024.

The contracts have a term of 15 and 12 years, respectively. They are indexed on merchant prices via an upside-sharing mechanism, where any potential gains from increased market prices are shared by the companies.

“The signing of these new upside sharing CPPAs in the United States is consistent with our strategy to take merchant exposure and will contribute to the objective of profitable growth for our Integrated Power business”, said Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies.

LyondellBasell is using PPAs to reduce its Scope 1 and 2 greenhouse gas emissions.

TotalEnergies noted that the deals follow PPAs it signed with Amazon and Saint-Gobain in the US, showing its ability to offer competitive renewable electricity to help corporations achieve their decarbonisation goals.