In a statement, the subsidiary of energy company Chevron Corporation said it intends to generate more than 500MW of clean energy to power some of Chevron’s global assets.
The renewable power projects will help the company meet its existing and future electricity demand through renewable sources.
Chevron pipeline and 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.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Under the agreement, Algonquin will be responsible for the design, development and construction of the projects. Chevron will purchase the electricity from the jointly-owned projects using power purchase agreements.
The first construction works will begin from next year, using land owned by Chevron.
The energy generated by the renewable facilities will power Chevron facilities in Texas and New Mexico in the US, as well as its operations in Argentina, Kazakhstan, and Western Australia.
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 clean 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.”
In August 2016, Algonquin Power and Utilities commenced full commercial operation of the 200MW Odell Wind Project in Minnesota, the US.