Industry
New solar energy field in Permian Basin to lower Chevron's carbon intensity

New solar energy field in Permian Basin to lower Chevron’s carbon intensity

The largest solar project so far in Eddy County is expected to be complete at the end of 2022

Working with Algonquin Power & Utilities Corp., Chevron broke ground on a solar energy project intended to generate renewable energy for its oil and gas operations in the Permian Basin in Texas and New Mexico.

Chevron teamed with Algonquin, a company with experience in developing renewable energy, in 2020 to construct renewable energy sources to provide electricity to certain assets.

“This is an exciting first project in our agreement with Algonquin,” said Fred Lawrence, commercial manager for Chevron and the project manager for this undertaking. “This will help power our operations while also helping us achieve our goal of lowering our carbon intensity.”

Why it matters

The renewable energy generated by the solar panels will replace energy Chevron currently gets from the grid during the day, freeing that up for other uses and decreasing the carbon intensity of its operations. Energy from the solar field will power Chevron’s Hayhurst New Mexico development area’s field load. This field includes an electric compressor station that compresses gas out of the field and sends it to the pipeline for transmission.

By The Numbers

How it works

In this joint venture with Algonquin, both parties hold a 50 percent stake. Chevron and Algonquin will construct the solar field together, and Algonquin will operate the facility. Then Chevron will purchase the solar energy from Algonquin.

Chevron worked with the New Mexico State Land Office to lease the site in southeastern New Mexico through a public auction. The currently unused parcel was chosen because of its proximity to a Chevron electrical substation for the Permian Basin.

“Eddy County is proud to support the development of this solar project, the largest one in our county so far, which will provide electricity to a portion of Chevron’s operations in the area,” said Allen Davis, Eddy County manager.

What’s to come

The next phases include delivery and installation of the solar panels and powering up the facility. The project is expected to be complete at the end of 2022.