Chevron U.S.A Inc., a wholly owned subsidiary of Chevron Corp., and Algonquin Power & Utilities Corp., a diversified international generation, transmission and distribution utility, have entered into an agreement seeking to co-develop renewable power projects that will provide electricity to strategic assets across Chevron’s global portfolio.
Under the four-year agreement, Chevron plans to generate more than 500 MW of its existing and future electricity demand from renewable sources.
“Chevron intends to lead in the future of energy by developing affordable, reliable and ever-cleaner energy,” says Allen Satterwhite, president of Chevron Pipeline & Power.
“This 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,” he adds.
Initial renewable power projects are expected to be sited on Chevron land and construction is planned to start in 2021. The projects will be focused on powering Chevron’s operations in the U.S. Permian Basin (Texas and New Mexico), Argentina, Kazakhstan and Western Australia. Projects will be jointly owned and co-developed by both parties. Algonquin will lead the design, development and construction of the projects. Chevron will purchase electricity from the jointly owned projects through power purchase agreements.
Algonquin, parent company of Liberty Utilities and Liberty Power, generates renewable energy through its portfolio of long-term contracted wind, solar and hydroelectric generating facilities, representing more than 2 GW of installed renewable generating capacity.