Chevron USA partners with Algonquin Power to co-develop renewable projects across the world

Chevron makes the renewables switch with Algonquin Power & Utilities through this partnership and PPA in 500 MW of global renewable projects. These companies could be looking for similar deals or investments to further their missions of transitioning to sustainable energy.

Chevron USA, a subsidiary of Chevron Corp, has entered a four-year partnership with Algonquin Power & Utilities to strategically create various renewables projects internationally. This power will provide electricity to assets across Chevron’s global portfolio, with more than 500 MW of renewable power. This is part of Chevron’s goal of providing affordable and clean energy to consumers as the world continues to further this energy transition. Algonquin Power’s generation, transmission, and distribution abilities partner with Chevron’s market power to complete these projects.

“This agreement advances Chevron’s commitment to lowering our carbon footprint by investing in renewable power solutions that are reliable, scalable, cost-efficient, and directly support our core business.” 

Allen Satterwhite; president of Chevron Pipeline & Power

The beginning projects will be built on Chevron owned land in 2021, focusing on powering their operations in Texas and New Mexico. Eventually, they hope to continue these projects in areas such as Argentina, Kazakhstan, and Western Australia. All of these are ideal locations for solar projects, and these renewable projects are very popular in warm areas. Chevron and Algonquin Power & Utilities will be co-owners of these projects as they co-develop them.

“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,”

Arun Banskota, Chief Executive Officer of Algonquin

Algonquin will be leading the design, development, and construction of this energy, while Chevron will be purchasing and distributing power through their power purchase agreement. Algonquin has expertise in this area as a parent company of Liberty Utilities and Liberty power. They currently have a 2 GW selection of long-term contracted wind, solar and hydroelectric facilities that make them very well qualified to take the lead on that end. It is unclear who is in charge of monitoring these projects, and it could be possible that these companies would be interested in partnering with a O&M company to take action on this aspect. 

Algonquin is an international utility company with $11 billion in assets, committed to providing reliable sustainable energy and water solutions through various developments and investments. They could be on the lookout for other opportunities for a similar partnership with solar or renewable companies looking to manage and maintain a project. They are dedicated to expanding their global pipeline of energy and water infrastructure projects. Partnerships or investments could be a way for them to accomplish this goal in the renewable fields with less hands on work.

Until now, Chevron Corporation has been focused on natural gas and crude oil refining and distribution. This includes transportation for these fuels and lubricants, manufacturing, and generating power. Recently they have made the slow transition into the renewables industry, so this partnership is especially important to them and changing their brand into a sustainable image through slow steps.