LyondellBasell (LYB), a global chemical leader recently sealed two long-term power purchase agreements in Europe. This is one of the critical steps toward sustainability the company is taking, through the reduction of greenhouse gas emissions and an assurance of renewable sources of energy.

Renewable Energy Supply for Key Facilities

LyondellBasell has reached an agreement with Vattenfall, one of Sweden’s largest energy providers, to a 15-year contract to decrease its carbon footprint. LYB will purchase 450 GWh yearly of offshore wind energy. Renewable energy will directly power several of the company’s key operations, including the MoReTec-1 plant in Wesseling, Germany, which focuses on advanced plastic recycling.

The MoReTec-1 plant is the first commercial-scale recycling facility of LyondellBasell. It uses proprietary technology to recycle plastic packaging waste. The plant will process enough waste to cover the annual plastic packaging needs of more than 1.2 million people in Germany.

LYB also finalized a 10-year PPA with wpd along with signing the Vattenfall deal in order to attain 79 GWh of Sicilian windpower. Starting in 2026, this energy will supply LYB’s production site and research center in Ferrara, Italy, where the world’s largest Ziegler-Natta catalyst production facility is located. The Ferrara site is a very important production facility for polypropylene and advanced polyolefin resins, which are used in a variety of applications such as food packaging, medical products, and automotive manufacturing.

Also read: Iberdrola Signs Power Purchase Agreement with AGRATI Group for Renewable Energy Supply

Long-Term Agreements for Price Stability and Sustainability

Chris Cain, LyondellBasell’s senior vice president of net zero transition strategy, said, “Adding these long-term agreements to our portfolio supports price stability to increase the use of renewable energy in a value-accretive way.

He added, “Our diverse global portfolio of renewable energy not only reduces our carbon footprint but also supports our customers’ ability to meet their CO2 reduction objectives.”

The agreements support LyondellBasell’s sustainability goals by adding renewable energy to the grid, improving infrastructure, and boosting reliability. These developments align with LyondellBasell’s philosophy of being a value-driven leader throughout the entire energy transition process.

Lunate, an Abu Dhabi-based global investment manager with USD 105 billion in assets, plans to acquire a minority stake in ADNOC Gas Pipelines, indirectly held by Snam, Europe’s leading gas infrastructure operator. Lunate will acquire the stake through its Long-Term Capital Fund I, pending the signing of a sale agreement and any relevant shareholder rights.

Strategic Role of ADNOC Gas Pipelines

ADNOC Gas Pipelines is a subsidiary of Abu Dhabi National Oil Company (ADNOC) holding lease rights over 38 pipelines spread across 982 kilometers in the UAE. The pipeline network remains essential to the integration of ADNOC upstream assets with local off-takers, constituting part of the energy infrastructure in the UAE. Additionally, this asset is crucial for providing stable, predictable cash flows in the energy sector and supports the country’s energy strategy.

Snam’s Involvement and Asset Rotation Strategy

Snam acquired its stake in ADNOC Gas Pipelines in 2020. It did this with the support of consortium partners: GIP, GIC, Brookfield Asset Management, Ontario Teachers’ Pension Plan Board, and NH Investment & Securities. Through its expertise in natural gas management, Snam has enhanced the value of this asset and also played a part in the UAE’s energy system.

Stefano Venier, Snam’s CEO, said, “The sale of the stake in ADNOC Gas Pipelines is consistent with the recently presented strategic plan, which focuses on the development of a pan-European multi-molecule 2025-2029 infrastructure. In this perspective, the rotation of some assets not located along the key European energy corridors where we operate in, allows us to capitalize their value.”

Also read: ADNOC Reaches Industry-Leading Carbon Intensity at Shah Field

Murtaza Hussain, Managing Partner at Lunate, expressed enthusiasm about the acquisition, highlighting that ADNOC Gas Pipelines is a crucial asset within the UAE’s energy infrastructure. He also emphasized that Lunate is strengthening its partnership with ADNOC through the investment and fulfilling its goal of offering investors high-quality assets.