Citi has entered into a new agreement to supply clean, renewable energy for a multi-year term to its operations in Texas. The power adds to Citi’s existing renewable supply, contributing to the bank’s goal to supply 100% renewable energy to power Citi’s facilities globally by 2020.
The power and renewable energy credits will come from the 163-MW Midway Wind Project located in San Patricio County, Texas. Citi is acquiring 64% of the renewable energy credits generated by the project. Sammons Renewable Energy is developing the Midway Wind Project, which is expected to achieve commercial operations in the first half of 2019.
“This unique partnership and transaction is reflective of our commitment to help accelerate the global transition to a low-carbon economy,” said Jagdish Rao, Head of Citi Enterprise Infrastructure. “These type of investments are good for the environment and pave the way for a sustainable future.”
Citi’s 100% renewable energy commitment was announced in 2017 and supports the bank’s Sustainable Progress Strategy, which outlines specific goals for environmental finance, environmental and social risk management and operations and supply chain. This renewable energy transaction helps secure 100% of Citi’s renewable energy delivery in North America beginning in 2020 and meets the requirements of RE100, a global initiative of more than 100 businesses that have renewable energy goals.
“As corporate procurement of renewable energy is becoming ever more popular, these types of transactions will become integral in helping scale the market,” said Roxana Popovici, a Managing Director responsible for renewable power transactions at Citi Energy Inc. “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.”
Last year, Citi provided a comprehensive financing package for the development, construction, and operation of the Midway Wind project, which also included an 11-year physical power hedge, agency & trust services, and an unlevered tax equity partnership investment.
This activity contributes to Citi’s $100 Billion Environmental Finance Goal, a commitment to finance and facilitate a total of $100 billion over 10 years toward activities that reduce the impacts of climate change and create environmental solutions that benefit people and communities.
Citi, a global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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