Chevron USA and Algonquin Power & Utility Corp have announced an agreement to co-develop renewable power projects to provide electricity to Chevron’s global portfolio.
Under the four-year agreement oil and gas multinational Chevron plans to generate more than 500MW of existing and future electricity demand, using renewable sources, to power their operations in the US Permian Basin, Argentina, Kazakhstan and Western Australia.
The 500MW capacity outlined in the agreement is equivalent to the energy used to power 400,000 US households in a year and construction is planned to start in 2021.
President of Chevron Pipeline & Power Allen Satterwhite said the agreement “advances Chevron’s commitment to lower our carbon footprint by investing in renewable power solutions that are reliable, scalable, cost efficient and directly support our core business.”
Projects will be jointly owned and co-developed by both parties. Algonquin, parent companies of Liberty Utilities and Liberty Power, will lead the design, development and construction of the projects. US multi-national oil industry company Chevron will purchase the electricity from the jointly owned projects through power purchase agreements.
Algonquin CEO Arun Banskota says continuing to invest in renewable energy solutions is fundamental to their business strategy: “By working with sustainability champions like Chevron we maximise the positive impact of the low carbon technologies we offer to communities across the US and Canada, and internationally.”