Under a 20 year power purchase agreement, SunPower will be supplying a projected 1.5 billion kWh of clean energy over the project’s lifetime.
SunPower (NASDAQ:SPWR), solar energy company announced that construction has begun on Chevron’s (NYSE:CVX) Lost Hills Solar Project in California. Through a power purchase plan, SunPower will be delivering 35 megawatts in solar power across 20 years for Chevron’s Lost Hills oil fields, which have produced 460 million barrels of oil over 40 years.
As quoted in the press release:
“For over 140 years, Chevron has delivered the energy that improves lives and enables human progress,” said Allen Satterwhite, President, Chevron Pipeline & Power. “As global demand for energy continues to grow, we are committed to supporting affordable, reliable, ever-cleaner energy and to exploring increased use of renewables in support of our business. Advancing economically viable renewable energy projects which scale is part of the equation and this project represents a meaningful step in our energy journey.”
The Lost Hills Oil Field has been a source of energy since it was discovered in 1910, producing more than 460 million barrels of oil equivalent over the past 40 years. Once complete in early 2020, the solar project is expected to provide power to the Lost Hills production and processing facilities and offices, meeting approximately 80 percent of its energy needs. Goldman Sachs Renewable Power (GSRP) will own the system and Chevron will receive environmental credits under the state of California’s Low Carbon Fuel Standard (LCFS) program.