The projects will energise Chevron’s assets in the US Permian Basin, Argentina, Kazakhstan and Western Australia.
Chevron, Algonquin partner to develop 500MW of renewable power projects. (Credit: seagul/Pixabay.)
Canadian renewable energy and regulated utility Algonquin Power & Utilities (AQN) has partnered with Chevron U.S.A, a wholly owned subsidiary of Chevron, to co-develop 500MW of renewable energy projects.
The companies have entered into a four-year agreement for the projects that would energise Chevron’s assets in the US Permian Basin, Argentina, Kazakhstan and Western Australia.
The first of the planned renewable power projects will be located on Chevron land, with the construction planned to commence in 2021.
Chevron will procure electricity through power purchase agreements
Chevron Pipeline & Power president Allen Satterwhite said: “Chevron intends to lead in the future of energy by developing affordable, reliable and ever-cleaner energy.
“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.”
AQN will be in charge of the design, development and construction of the renewable power projects, while Chevron will procure electricity from the jointly owned projects through power purchase agreements.
Algonquin CEO Arun Banskota said: “This partnership leverages Algonquin’s technical and operational expertise in renewable power with Chevron’s scale, land, and local knowledge to enable faster, more cost-effective cleaner energy solutions.
“Continuing to invest in renewable energy solutions is fundamental to our business strategy. By working with sustainability champions like Chevron, we maximize the positive impact of the low carbon technologies we offer to communities across the U.S. and Canada, and internationally.”
The company said that the projects will be jointly owned and co-developed by both the companies.
It also said that the 500MW of renewable energy capacity is equivalent to the annual power consumed by approximately 400,000 US households.
In August last year, Algonquin and Renewable Energy Systems (RES), a US-based large-scale independent renewable energy company, parntered to jointly develop the 480MW Maverick Creek wind project in Texas.