Citi has signed a new multi-year agreement with a renewable energy firm for supply of renewable energy from Midway wind project to power its operations in Texas,
Image: The 163MW Midway Wind Project located in San Patricio County. Photo: Courtesy of pakorn /FreeDigitalPhotos.net.
The bank said that the present agreement will contributes to its goal to supply 100% renewable energy to power Citi’s facilities across the globe by 2020.
The 163MW Midway wind project is located in San Patricio County, Texas, and is expected to provide the power and renewable energy credits for the bank. Citi is acquiring 64% of the renewable energy credits generated by the project.
The Midway wind project is being developed by Sammons Renewable Energy, and commercial operations at the wind farm are expected to start in the first half of 2019.
In 2017, Citi had announced its 100% renewable energy commitment that supports the Sustainable Progress Strategy. The commitment outlines specific goals for environmental finance, environmental and social risk management and supply chain operations.
Citi Enterprise Infrastructure head Jagdish Rao said: “This unique partnership and transaction is reflective of our commitment to help accelerate the global transition to a low-carbon economy. These type of investments are good for the environment and pave the way for a sustainable future.”
The company said that the renewable energy transaction helps secure 100% of its renewable energy delivery in North America starting in 2020 and meets the requirements of RE100, a global initiative of more than 100 businesses that have renewable energy goals.
Citi Energy renewable power transactions managing director Roxana Popovici said: “As corporate procurement of renewable energy is becoming ever more popular, these types of transactions will become integral in helping scale the market.
“This unique collaboration underscores Citi’s ability to provide a continuum of sustainable and scalable solutions and we will continue to explore new structures and innovative approaches as the market evolves.”
Citi’s $100bn Environmental Finance Goal is a commitment to finance a total of $100bn over 10 years for activities that reduce the impacts of climate change and create environmental solutions for the people and communities.
Last year, the bank has provided a complete financing package for the development, construction, and operation of the Midway Wind project, which included an 11-year physical power hedge, agency & trust services, and an unlevered tax equity partnership investment.