LyondellBasell Industries N.V. (LYB), a prominent chemical enterprise, announced on Wednesday the signing of two strategic power purchase agreements in Europe, collaborating with Vattenfall and wpd to advance the reduction of greenhouse gas emissions.
The agreements are set to enhance the integration of renewable energy into the power grid, thus improving the grid's reliability and overall efficiency. By securing these agreements, LyondellBasell is afforded long-term price stability, which, in turn, positions renewable energy as a more predictable and appealing alternative to the volatile prices associated with fossil fuels.
In a landmark 15-year agreement with Vattenfall, a leading European energy provider, LyondellBasell will obtain 450 gigawatt-hours of offshore wind energy annually. This substantial supply supports the company's commitment to circular and low-carbon operations, particularly in Germany.
Moreover, the agreement includes energy provision to the MoReTec-1 plant in Wesseling—LyondellBasell's pioneering large-scale recycling facility. Utilizing proprietary technology, this plant is poised to recycle an amount of plastic packaging waste equivalent to that generated by over 1.2 million Germans each year.
Adding to its renewable energy portfolio, LyondellBasell has secured a 10-year agreement, commencing in 2026, with wind and solar farm developers and operators under the entity wpd. This partnership ensures an annual supply of 79 GWh of onshore wind power from the Licata project in Sicily, Italy, aimed at consistently providing low-carbon electricity to the region, including its production site and research center in Ferrara, Italy.
As of pre-market trading, LyondellBasell's stock displays a minor decline of 0.01%, priced at $78.30 on the New York Stock Exchange.
