Chevron to power Permian activity with 12-year wind PPA

Chevron has signed a 12-year power purchase agreement (PPA) with a new West Texas-based wind farm to power its Permian Basin activities. Chevron's electricity load in the region stands at 65 MW and the oil major is seeking additional renewable solutions for Permian and other assets, to meet an anticipated increase in demand. Chevron is also set to buy renewable energy credits from Texas.

US oil major Chevron Corp (NYSE:CVX) has signed a 12-year power purchase agreement (PPA) for electricity from a new wind park in West Texas for its operations in the Permian.

This will lower the carbon intensity of its activities.

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On announcing the deal earlier this month, the company said its current West Texas Permian electricity load stands at around 65 MW. It will be exploring additional renewable energy solutions in the Permian as its power demand is expected to grow. The company is also interested in options to source renewable power for other business assets globally.

In addition to the PPA, Chevron will also buy renewable energy credits (RECs) in Texas to meet state requirements.

“We have long been committed to understanding and evaluating renewable energy sources which are scalable and align with our business assets. This PPA demonstrates that commitment,” said Chevron Pipeline & Power president Allen Satterwhite.