Encavis, LyondellBasell ink PPA for 260MW German PV project

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Encavis has been active in its home country of late, signing multiple PPAs and construction deals. Image: Encavis

German independent power producer (IPP) Encavis has signed an offtake deal with LyondellBasell for 208MW worth of solar PV power generation.

The power purchase agreement (PPA) will see LyondellBasell – a chemical company – receive around 210GWh of power annually from Encavis’ 260MW PV project to the north of Berlin. Construction on the site began last month and is expected to be completed in 2025, from which point the 12-year PPA will take effect.

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Encavis realised the project through its Encavis Infrastructure Fund IV, approximately half of which has already been allocated.

“Power Purchase Agreements are a critical lever in our efforts to reduce our absolute scope 1 and 2 greenhouse gas emissions,” said Chris Cain, LyondellBasell senior vice president for net zero transition strategy.

LyondellBasell said that it aims to procure 50% of its electricitiy from renewable energy sources by the end of this decade (based on 2020 procurement levels), and that in 2020 electricity consumption accounted for around 15% of its scope 1 and 2 emissions.

In October 2023 it inked a PPA with bp-owned solar developer Lightsource bp for 149MW of Spanish solar generation capacity, and earlier that year it signed for 259MW under a 15-year PPA with Spanish developer Grenergy.

Encavis said that this 260MW plant is one of the “largest” in Germany. Last August, the company signed a framework agreement with fellow German PV developer Innovar Solar to build 160MW of solar capacity in the country, spread across nine projects. Last month, Encavis also inked a contract with engineering, procurement and construction (EPC) firm Belectric, whereupon construction began at Encavis’ 114MW PV project in northeastern Germany.

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