LyondellBasell and Encavis asset management ag announce renewable energy power purchase agreement – EQ
In Short – LyondellBasell and Encavis Asset Management AG have jointly announced a renewable energy power purchase agreement (PPA). This agreement signifies LyondellBasell’s commitment to sustainable practices by sourcing renewable energy, contributing to environmental stewardship and reducing carbon emissions.
In Details – LyondellBasell and Encavis Asset Management AG (Encavis AM) announced they signed a power purchase agreement (PPA) to secure 208 megawatts (MW) of renewable electricity generation capacity from the solar park in Bartow, Germany. This solar park will rank among the largest of its kind in Germany. Under this 12-year PPA, Encavis AM will deliver approximately 210 gigawatt-hours (GWh) of solar power to LyondellBasell annually. This is comparable to the annual electricity consumption of approximately 56,500 European homes, starting in 2025. With this latest PPA, the company will reach more than 90% of its total renewable electricity goal.
“Power Purchase Agreements are a critical lever in our efforts to reduce our absolute scope 1 and 2 greenhouse gas emissions,” says Chris Cain, LyondellBasell Senior Vice President for Net Zero Transition Strategy. “This latest agreement will accelerate the development and deployment of clean energy across different sectors in Germany.” Approximately 15% of the company´s 2020 baseline scope 1 and 2 greenhouse gas emissions come from its electricity consumption. As an important component of its pathway to net zero by 2050, LyondellBasell has a target to procure a minimum of 50% of electricity from renewable sources by 2030, based on 2020 procured levels.
Encavis AM selected the location of the solar park, situated approximately 150 kilometers (or 93 miles) north of Berlin, to maximize solar radiation and efficiency. Construction of the first phase is scheduled to begin in March 2024, with completion scheduled for the summer of 2025. The park will have a total expected electricity capacity of 260 MW. “This vast large-scale solar project in Bartow reaffirms our expertise in sophisticated investments in the Renewable Energy sector and makes a substantial contribution to the energy transition. Leveraging our industry know-how, we are committed to operating the solar park in an environmentally sustainable and economically profitable manner,” says Karsten Mieth, Spokesman of the Board of Encavis Asset Management AG.
About Encavis Asset Management AG
Encavis Asset Management AG offers institutional investors tailor-made portfolios and fund solutions for investments in the growth market of Renewable Energies. The Company has been successfully investing in this sector since 2006, covering the entire value chain from asset sourcing to the operational management of investments. Encavis Asset Management AG is a wholly owned subsidiary of MDAX-listed Encavis AG (ISIN: DE0006095003, Prime Standard, Ticker symbol: ECV) and, as part of the Encavis Group, benefits from their many years of experience and broad industry network. Encavis AG is one of the leading independent power producers (IPPs) in the field of Renewable Energies in Europe. The Encavis Group’s installed capacity currently adds up to around 3.5 gigawatts (GW), of which around 2.2 GW is provided by Encavis AG. This corresponds to a total saving of around 0.8 million tonnes of CO2 per year stand-alone for the Encavis AG. In addition, the Group currently has around 1.2 GW of capacity under construction, of which around 830 MW are own assets. Another Group member company is Stern Energy S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe. Encavis is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with “AA” and ISS ESG with their “Prime” label (A-).
About LyondellBasell
LyondellBasell is a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world’s largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare.
