Shell to Buy Power from New Mexico Wind Farm Amid Transition to Renewable Energy

Global oil and gas giant Shell planned to buy renewable power from a New Mexico windfarm through an agreement that also includes the University of California.

Pattern Energy’s SunZia Wind project was planned to be built by 2026, generating about 3,500 megawatts of wind energy in south-central New Mexico.

Turbines are in Lincoln, Torrance and San Miguel counties and will connect to western markets via the in progress SunZia Transmission line, traveling 550 miles into Arizona with a capacity of 525 kilovolts.

The producer said it signed long-term power purchase agreements with Shell Energy North America and with the regents of the University of California for a portion of the energy generated by the facility.

It’s part of Shell’s recent agenda of increasing its renewable power output, after the company last year launched its Shell Energy residential power brand in the U.S., offering 100 percent renewable energy plans to customers in Texas, initially.

The efforts mark a transition for the British multinational oil major, which drills for shale oil and gas in Canada and Argentina in the Americas, having sold its Permian Basin assets in 2021 to ConocoPhillips.

"We're excited about this entry into the residential electricity market and look forward to providing a suite of 100 percent renewable electricity plans to customers across the state," said Glenn Wright, vice president of renewables and energy solutions.

In 2022, Shell reported it “more than doubled” its solar and wind generation compared to 2022, with a total capacity of 6.4 gigawatts, while also reporting two thirds of the company’s capital spending remained on oil and gas, but also curbing emissions by 30 percent compared with 2016 levels.

“Shell is widely known for its leadership in developing and delivering low-carbon solutions for commercial customers,” Wright said. “Now, backed by our extensive energy trading and marketing expertise, we can offer new products to residential customers who want sustainable, innovative energy plans for their homes."