LyondellBasell increases greenhouse gas reduction targets

The company's previously announced goal to achieve net zero scope 1 and 2 GHG emissions from global operations by 2050 remains unchanged.

"We believe a more ambitious GHG reduction target is achievable and will create substantial value for all of our stakeholders," said Peter Vanacker, CEO of LyondellBasell. "Reducing emissions while simultaneously building a world-class Circular and Low Carbon Solutions business is needed to meet the demands we are seeing throughout the value chain. This approach is not only good for society, but also good for business. We will follow a disciplined approach to prioritise high-return projects and will continue to meet our return expectations."

Estimates of the capital expenditures necessary to achieve its emissions reduction goals are built into the company's long-range plan. These investments are not expected to represent a significant portion of total capital expenditures over the next three years, nor change the capital allocation strategy. While many of the GHG emissions reduction projects are still in the early stages of development, the company will evaluate, pursue and prioritise its GHG emission investments based on each project's rate of return.

LyondellBasell will submit its climate goals to SBTi to be validated against SBTi guidance. The SBTi defines and promotes best practice for corporate GHG emissions target setting aligned to the latest climate science.

In the near-term, LyondellBasell continues to execute its previously announced initiatives to reduce emissions, including:

• Startup of four power purchase agreements in Texas, representing approximately 400 000 t of the company's scope 2 GHG emissions annually.
• Phasing out use of coal at its Wesseling, Germany site, reducing the site's scope 2 emissions by about 170 000 tpy.

As announced in April 2022, the company is on track to close its Houston refinery by the end of December 2023. This is expected to reduce scope 1 and scope 2 GHG emissions by more than 3 million tpy and scope 3 emissions by approximately 40 million tpy.

LyondellBasell also aims to secure at least 75% of its global electricity from low carbon power by 2030, a majority of which will come from its existing goal to procure a minimum of 50% of global electricity from renewable sources.

Many of the GHG emissions reduction initiatives planned for implementation by 2030 will begin in 2024 and beyond as the company leverages existing asset turnaround schedules for its largest sites, including:

• Process heat recovery projects, electrification of a large process turbine and optimisation of steam demand at its site in Wesseling, Germany in 2024.
• Optimisation of heated equipment through advanced digitisation, efficiency improvements and fuel management at its site in Channelview, Texas in 2025.

In addition, the company's previously announced Circular and Low Carbon Solutions business will focus on achieving its goal to produce and market 2 million tpy of recycled and renewable-based polymers by 2030, further reducing scope 3 emissions.

Value chain collaboration remains a top priority for the company. Most recently, LyondellBasell joined the World Economic Forum Low Carbon Emitting Technologies (LCET) group to help accelerate the development and upscaling of the low carbon emitting technologies required for the chemical industry and related value chains to reach net zero emissions by 2050.

Additional information regarding the company's transition plan, climate risk and capital allocation approach and its alignment to the Task Force on Climate-Related Financial Disclosures (TCFD) requirements will be included in the 2022 LyondellBasell Sustainability Report.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/20122022/lyondellbasell-increases-greenhouse-gas-reduction-targets/