LyondellBasell (LYB), a global leader in the chemical industry, has announced two significant power purchase agreements (PPAs) to reduce greenhouse gas emissions. These agreements will provide renewable energy to power production facilities in Germany and Italy, marking a substantial step towards the company's net-zero transition.

The PPAs not only contribute to LYB's environmental goals but also offer long-term price stability, shielding the company from the volatile fluctuations of fossil fuel markets. This strategic move makes renewable energy a more economically attractive option, ensuring predictable energy costs for the foreseeable future.

The first agreement, a 15-year partnership with Vattenfall, will provide LYB with 450 gigawatt-hours (GWh) of offshore wind energy annually. This substantial supply will be instrumental in powering LYB’s circular and low-carbon solutions in Germany, including its groundbreaking MoReTec-1 plant in Wesseling in Germany. The MoReTec-1 facility, LYB's first commercial-scale advanced recycling plant, is a key component of the company's strategy to address plastic waste. It is designed to process the equivalent of the plastic packaging waste generated by over 1.2 million German citizens each year, utilizing LYB's proprietary recycling technology. The renewable energy powering this plant will significantly enhance its environmental performance and contribute to a more sustainable future for plastic recycling.

The second PPA, a 10-year agreement with wpd, secures 79 GWh of onshore wind power annually from the Licata project in Sicily, Italy. Expected to commence in 2026, this agreement will provide a reliable source of renewable and low-carbon electricity to the region, benefiting LYB's production site and research center in Ferrara. The Ferrara site holds a prominent position as the world’s largest facility for Ziegler-Natta catalyst development and production. The polymer manufacturing units at the Ferrara site produce polypropylene and advanced polyolefin resins, which are essential components in a wide range of applications, from food packaging and medical products to automotive parts. The transition to renewable energy at this site will further enhance the sustainability of these critical products.

"Adding these long-term agreements to our portfolio supports price stability to increase the use of renewable energy in a value-accretive way," stated Chris Cain, LYB senior vice president, net zero transition strategy. "Our diverse global portfolio of renewable energy not only reduces our carbon footprint but also supports our customers’ ability to meet their CO2 reduction objectives."

Both PPAs represent a significant investment in renewable energy infrastructure and demonstrate LYB's commitment to being a value-oriented leader throughout the industry's energy transition.