August 27, 2018 Read More →

ExxonMobil looks to join corporate ranks of green power buyers

Bloomberg:

Exxon Mobil Corp. has been looking to buy renewable energy for delivery in Texas, according to people familiar with the matter.

The largest U.S. oil company sent out a request for proposals with a June 8 deadline, inviting solar or wind power suppliers to pitch contracts that would last 12, 15 or 20 years, according to a document obtained by Bloomberg and people with knowledge who asked not to be named discussing confidential matters. Exxon, based in Irving, Texas, is seeking at least 100 megawatts and would consider proposals for more than 250 megawatts.

“I have never seen an oil and gas company doing a corporate PPA anywhere near that size,” said Kyle Harrison, a New York-based analyst at Bloomberg NEF, referring to the power-purchase agreements used to buy electricity. “If you’re seeing the biggest oil and gas companies going out and making investments in clean energy, it shows that renewables are cost-competitive. This can be a way for them to show a commitment to sustainability without suffering economically.”

Exxon declined to comment. It’s not clear whether the company has reached an agreement with any supplier to buy this power, nor whether it was seeking the electricity for its own use.

But as the price of renewable power declines, the company may see the value in consuming wind or solar, even if it eschews producing that kind of energy. Texas is the biggest wind-producing U.S. state, with power prices occasionally going negative on windy days, and solar power is cheaper than coal in many parts of the world.

More: Exxon Seeks Wind, Solar Power Delivery in Texas

 

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