Lightsource BP, the solar power subsidiary of oil and gas major BP, has completed a US$460 million financing package that will enable the construction of 368MW of solar power in the US.
The portfolio consists of two projects, both of which Lightsource BP expects to begin operation in 2024, and were funded with power purchase agreements (PPAs). The company completed funding on the 188MW Honeysuckle solar plant in Indiana thanks to a PPA with AEP Energy Partners, and delivered funding for the 180MW Prairie Ronde solar plant in Louisiana with a PPA signed alongside McDonald’s.
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Construction at both projects is already underway, and Lightsource BP has highlighted the potential environmental benefits of the facilities. The company expects the farms to remove around 213,188 tonnes of greenhouse gases per year from its carbon footprint, the equivalent of taking 85,000 cars off the roads.
“By leveraging domestic content incentives offered in the Inflation Reduction Act (IRA), both the Honeysuckle and Prairie Ronde solar projects provide exciting examples of the IRA’s benefits in real action,” said Kevin Smith, CEO of the Americas at Lightsource BP. “With the right policies, we can boost made-in-America products, create jobs and reduce our nation’s foreign dependence.”
Lightsource BP’s latest projects are two of many projects to have benefited from the US’s increasing interest in domestic renewable power generation, spurred by the IRA, President Biden’s flagship clean energy legislation. The act has encouraged investments in both renewable power and US-based manufacturing and distribution, and Lightsource BP’s latest deal fits these priorities, with US-based First Solar and Array Technologies providing the solar panels and solar trackers, respectively, at the two new projects.
The news also fits with BP’s renewable power goals, namely to generate more electricity from clean sources. The company, through Lightsource BP, operates 3.2GW of solar capacity, and in 2021, announced plans to acquire and develop 9GW of other solar projects, a strong commitment to the sector that the Honeysuckle and Prairie Ronde facilities mirror.
This is of particular interest to BP, which has seen its greenhouse gas emissions increase in recent years. While the company’s emissions fell from 34 billion tonnes of carbon dioxide equivalent (BTCO2e) in 2019 to 32BTCO2e during the Covid-19 pandemic, this increased to 33.8 BTCO2e in 2021, encouraging BP to double down on its renewable commitments.