ExxonMobil Deal To Buy Permian Renewable Power

November 28, 2018

 

In an unprecedented move, ExxonMobil will be using renewable energy to produce oil and gas in the Permian Basin.

The Irving-based giant said Tuesday it has a new deal with Lincoln Clean Energy allowing Exxon to buy 500 MW of electricity from Texas a Texas wind farm and a solar facility in the state.

Orsted said recently it intends to move aggressively into North American renewable enegy. with plans to have a 2.5 GW US wind and solar portfolio by the end of 2022, adding a potential of 40 GW by 2029.

The two long-term power purchase contracts with Lincoln go into effect in 2020.

Lincoln Clean Energy is an indirect subsidiary of Denmark’s Orsted A/S, which purchased 100% equity interest in  Lincoln from I Squared Capital in early August and folded it into Orsted subsidiary Onshore Wind.

The electricity will originate 250 MW from the Sage Draw wind farm in Lynn County south of Lubbock  (operational by early 2020) and 250 MW from the Permian solar plant (operational by 2Q 2021).