LyondellBasell takes another step toward energy transition with new power agreements
LyondellBasell (LYB) has announced two significant power purchase agreements (PPAs) in Europe to advance its energy transition goals. The first is a 15-year agreement with Vattenfall to secure 450 gigawatt-hours (GWh) annually of offshore wind energy in Germany, supporting LYB's MoReTec-1 plant in Wesseling, which recycles plastic packaging waste from over 1.2 million German citizens yearly.
The second is a 10-year agreement with wpd for 79 GWh annually of onshore wind power from the Licata project in Sicily, Italy, starting in 2026. This will supply renewable electricity to LYB's Ferrara site, the world's largest Ziegler-Natta catalyst development facility, which produces polypropylene and advanced polyolefin resins.
These agreements provide LYB with long-term price stability for energy costs while supporting grid infrastructure and renewable energy integration.
LyondellBasell (LYB) ha annunciato due significativi contratti di acquisto di energia (PPA) in Europa per avanzare verso i suoi obiettivi di transizione energetica. Il primo è un accordo di 15 anni con Vattenfall per garantire 450 gigawattora (GWh) all'anno di energia eolica offshore in Germania, a sostegno dell'impianto MoReTec-1 di LYB a Wesseling, che ricicla i rifiuti di imballaggio in plastica da oltre 1,2 milioni di cittadini tedeschi ogni anno.
Il secondo è un accordo di 10 anni con wpd per 79 GWh all'anno di energia eolica onshore dal progetto Licata in Sicilia, Italia, a partire dal 2026. Questo fornirà elettricità rinnovabile al sito di LYB a Ferrara, il più grande impianto al mondo per lo sviluppo di catalizzatori Ziegler-Natta, che produce polipropilene e resine poliolefiniche avanzate.
Questi accordi offrono a LYB stabilità dei prezzi a lungo termine per i costi energetici, supportando al contempo l'infrastruttura della rete e l'integrazione delle energie rinnovabili.
LyondellBasell (LYB) ha anunciado dos contratos significativos de compra de energía (PPA) en Europa para avanzar en sus objetivos de transición energética. El primero es un acuerdo de 15 años con Vattenfall para asegurar 450 gigavatios-hora (GWh) anuales de energía eólica marina en Alemania, apoyando la planta MoReTec-1 de LYB en Wesseling, que recicla residuos de envases plásticos de más de 1.2 millones de ciudadanos alemanes cada año.
El segundo es un acuerdo de 10 años con wpd para 79 GWh anuales de energía eólica terrestre del proyecto Licata en Sicilia, Italia, que comenzará en 2026. Esto suministrará electricidad renovable al sitio de LYB en Ferrara, la instalación de desarrollo de catalizadores Ziegler-Natta más grande del mundo, que produce polipropileno y resinas poliolefínicas avanzadas.
Estos acuerdos brindan a LYB estabilidad de precios a largo plazo para los costos de energía, al tiempo que apoyan la infraestructura de la red y la integración de energías renovables.
라이온델바젤 (LYB)은 에너지 전환 목표를 추진하기 위해 유럽에서 두 개의 중요한 전력 구매 계약(PPA)을 발표했습니다. 첫 번째는 바텐팔과의 15년 계약으로, 독일에서 매년 450 기가와트시(GWh)의 해상 풍력 에너지를 확보하며, LYB의 Wesseling에 있는 MoReTec-1 공장을 지원합니다. 이 공장은 매년 120만 명 이상의 독일 시민의 플라스틱 포장 쓰레기를 재활용합니다.
두 번째는 wpd와의 10년 계약으로, 2026년부터 시칠리아의 Licata 프로젝트에서 매년 79 GWh의 육상 풍력 전력을 공급합니다. 이는 LYB의 페라라 사이트에 재생 가능 전기를 공급하며, 세계 최대의 지글러-나타 촉매 개발 시설로, 폴리프로필렌 및 고급 폴리올레핀 수지를 생산합니다.
이 계약들은 LYB에 장기적인 에너지 비용 가격 안정성을 제공하며, 동시에 전력망 인프라와 재생 가능 에너지 통합을 지원합니다.
LyondellBasell (LYB) a annoncé deux accords importants d'achat d'énergie (PPA) en Europe pour faire avancer ses objectifs de transition énergétique. Le premier est un accord de 15 ans avec Vattenfall visant à garantir 450 gigawattheures (GWh) annuels d'énergie éolienne offshore en Allemagne, soutenant l'usine MoReTec-1 de LYB à Wesseling, qui recycle les déchets d'emballage plastique de plus de 1,2 million de citoyens allemands chaque année.
Le second est un accord de 10 ans avec wpd pour 79 GWh annuels d'énergie éolienne terrestre provenant du projet Licata en Sicile, Italie, à partir de 2026. Cela fournira de l'électricité renouvelable au site de LYB à Ferrare, le plus grand site de développement de catalyseurs Ziegler-Natta au monde, qui produit du polypropylène et des résines polyoléfines avancées.
Ces accords offrent à LYB une stabilité des prix à long terme pour les coûts énergétiques tout en soutenant l'infrastructure du réseau et l'intégration des énergies renouvelables.
LyondellBasell (LYB) hat zwei bedeutende Power Purchase Agreements (PPAs) in Europa angekündigt, um seine Ziele für den Energiemix voranzutreiben. Das erste ist ein 15-Jahres-Vertrag mit Vattenfall, um jährlich 450 Gigawattstunden (GWh) Offshore-Windenergie in Deutschland zu sichern, welche die LYB-Anlage MoReTec-1 in Wesseling unterstützt, die jährlich Plastikverpackungsabfall von über 1,2 Millionen deutschen Bürgern recycelt.
Der zweite ist ein 10-Jahres-Vertrag mit wpd über 79 GWh jährlich an Land Windkraft aus dem Lizenzprojekt in Sizilien, Italien, beginnend im Jahr 2026. Dies wird erneuerbare Elektrizität an das LYB-Werk in Ferrara liefern, die größte Einrichtung zur Entwicklung von Ziegler-Natta-Katalysatoren weltweit, die Polypropylen und fortschrittliche Polyolefinharze produziert.
Diese Verträge bieten LYB langfristige Preisstabilität für Energiekosten und unterstützen gleichzeitig die Netz-Infrastruktur sowie die Integration erneuerbarer Energien.
- Secured long-term price stability for energy costs through PPAs
- 450 GWh annual renewable energy secured for German operations
- 79 GWh annual renewable energy secured for Italian operations
- Supports company's greenhouse gas reduction objectives
- None.
Insights
The strategic significance of LyondellBasell's new power purchase agreements extends far beyond mere environmental compliance. These PPAs represent a sophisticated approach to operational cost management and business risk mitigation in an increasingly volatile energy market.
The 15-year agreement with Vattenfall, securing 450 GWh annually, is particularly noteworthy as it powers the MoReTec-1 facility - a strategic asset in Germany's circular economy infrastructure. This facility's capacity to process waste from 1.2 million citizens positions LYB at the forefront of the European plastic recycling market, while the renewable power agreement enhances its ESG credentials and operational efficiency.
The financial implications are multifaceted:
- Long-term price stability in a historically volatile European energy market
- Reduced exposure to carbon pricing mechanisms and regulatory risks
- Enhanced competitiveness in securing contracts with sustainability-focused customers
- Potential premium pricing for products manufactured with renewable energy
The strategic decision to power the Ferrara research center with renewable energy is particularly astute. As the world's largest Ziegler-Natta catalyst development facility, this site's innovations directly influence the company's competitive position in the high-margin specialty polymers market. The renewable power agreement adds another layer of sustainability to products already important for medical, automotive and food packaging applications.
These agreements represent a well-calculated move in an industry where energy costs can significantly impact margins. By securing long-term renewable power at predictable prices, LYB is effectively creating a competitive moat while positioning itself as a preferred supplier for environmentally conscious customers in premium markets.
Houston/Rotterdam, Jan. 29, 2025 (GLOBE NEWSWIRE) -- LyondellBasell (LYB), a leader in the global chemical industry, announced today the signing of two significant power purchase agreements (PPAs) in Europe, further supporting its commitment to reduce greenhouse gas emissions. The PPAs offer LYB long-term price certainty, which helps stabilize energy costs and make renewable energy more attractive compared to fluctuating fossil fuel prices.
“Adding these long-term agreements to our portfolio supports price stability to increase the use of renewable energy in a value-accretive way,” said 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.”
Under the 15-year agreement with Vattenfall, LYB will secure 450 gigawatt-hours (GWh) annually of offshore wind energy to support LYB’s circular and low-carbon solutions in Germany, including powering the company’s MoReTec-1 plant in Wesseling. The MoReTec-1 plant is the company’s first commercial-scale advanced recycling plant and is designed to recycle the amount of plastic packaging waste generated by over 1.2 million German citizens per year using LYB’s proprietary technology.
LYB also signed a long-term PPA with wpd, securing 79 GWh annually of onshore wind power from the Licata project in Sicily, Italy. The 10-year agreement is expected to begin in 2026 and will help provide a reliable supply of renewable and low-carbon electricity to the region, including LYB’s production site and research center in Ferrara, Italy. The LYB site is the world's largest for Ziegler-Natta catalyst development and production. The polymer manufacturing units at the Ferrara site produce polypropylene and advanced polyolefin resins used in a wide variety of applications including food packaging, medical products and automotive parts.
Both power agreements help integrate renewable energy into the grid, improving infrastructure and reliability and demonstrating the company's commitment to be a value-oriented leader throughout the industry’s energy transition.
About LyondellBasell
We are LyondellBasell (NYSE: LYB) – 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. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
About Vattenfall
Vattenfall is a European energy company that has been driving the electrification of industry, powering homes and modernising the way people live for more than 100 years through innovation and collaboration. Our goal is fossil-free - a future where we enable everyone to live, move and produce things fossil-free. We want to achieve net-zero emissions across our entire value chain by 2040. We employ around 20,000 people across the Group, have around 14 million customers and operate mainly in Sweden, Germany, the Netherlands, Denmark and the UK. Vattenfall is owned by the Swedish state.
About wpd
wpd is one of the world's leading developers and operators (IRPP) of wind and solar farms. Founded in 1996, the company develops, finances, constructs and operates wind farms and solar parks in 31 countries. The IRPP business includes projects in its own portfolio with a total capacity of 3,192 MW. Thanks to its growing expertise, the company is considered a reliable partner for Power Purchase Agreements (PPAs). wpd is steadily expanding its activities in the German domestic market and internationally in Europe, Asia, North America and South America and has a project pipeline totaling 19,320 MW of onshore wind and 5,015 MW of solar energy.
FAQ
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