Exxon To Power Oil Production With Renewable Energy

Exxon has inked a 12-year deal with Danish renewable energy company Orsted to buy 500 MW of electricity produced by solar and wind farms to power its oil production in the Permian, Bloomberg reports.

Although the terms of the contract remained undisclosed, it is the largest such contract featuring an oil company as a party, Bloomberg new Energy Finance commented.

“We frequently evaluate opportunities to diversify our power supply and ensure competitive costs,” Exxon spokeswoman Julie King told Bloomberg in a statement. The company has been the target of a lot of criticism—and lawsuits—regarding its attitude to climate change and renewable energy use. Yet now that solar and wind power is becoming cheaper and demand for the commodity in the Permian is soaring, the time is apparently right for Exxon to start changing.

The electricity Exxon will be buying from Orsted will be produced at two farms, one solar and one wind—both which are still under construction. The Sage Draw wind farm will be completed in 2020 and the Permian Solar farm will be launched in 2021.

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