Benzinga | Jul 30, 2020 10:12AM EDT

Chevron's Chevron USA, Algonquin Power & Utilities Earlier Reported 4-Year Deal Seeking To Co-Develop Renewable Power Projects To Provide Electricity To Strategic Assets Across Chevron Portfolio

Chevron U.S.A Inc. (CUSA), a wholly owned subsidiary of Chevron Corporation (NYSE:CVX), and Algonquin Power & Utilities Corp. ("Algonquin") (TSX:AQN) (NYSE:AQN) today announced an agreement seeking to co-develop renewable power projects that will provide electricity to strategic assets across Chevron's global portfolio. Under the four-year agreement, Chevron plans to generate more than 500 megawatts (MW) of its existing and future electricity demand from renewable sources.

"Chevron intends to lead in the future of energy by developing affordable, reliable and ever-cleaner energy," said Allen Satterwhite, President of Chevron Pipeline & Power. "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."

Initial renewable power projects are expected to be sited on Chevron land and construction is planned to start in 2021. The projects will be focused on powering Chevron's operations in the U.S. Permian Basin (TX and NM), Argentina, Kazakhstan and Western Australia. Projects will be jointly owned and co-developed by both parties. Algonquin will lead the design, development and construction of the projects. Chevron will purchase electricity from the jointly owned projects through power purchase agreements.

"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," said Arun Banskota, Chief Executive Officer of Algonquin. "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."

Algonquin, parent company of Liberty Utilities and Liberty Power, is a North American leader in the generation of renewable energy through its portfolio of long-term contracted wind, solar and hydroelectric generating facilities, representing more than 2 GW of installed renewable generating capacity.

The 500 megawatts of capacity outlined in the agreement is equivalent to the energy used to power 400,000 U.S. households for a year.