Bank of America (BofA) announced today an agreement with clean energy company Constellation for the purchase of solar power and project-specific renewable energy certificates from a new US-based solar project.
Under the new 15-year, 160 MW agreement, BofA will purchase enough renewable energy to help power 17% of its global electricity consumption needs.
Alex Liftman, Global Environmental executive at Bank of America, said:
“This initiative will enable us to reduce our operational impact on the environment and help drive more renewable energy development in our local communities. It is critical that we accelerate the low-carbon transition by developing and deploying more low-carbon solutions, including a sustainable electric grid.”
The renewable energy from the agreement will be generated by Mammoth Central, the third and final phase of the Mammoth Solar project currently under development by renewable energy company Doral Renewables in Indiana.
BofA’s retail electricity supply contract with Constellation covers locations in Delaware, Pennsylvania and Virginia, where BofA will power its facilities with solar energy. Through the agreement, the bank is expected to reduce greenhouse gas (GHG) emissions associated with its energy use by over 95,000 metric tons annually, equivalent to the emissions of over 20,000 passenger vehicles driven for a year.
Jim McHugh, Chief Commercial Officer, Constellation, said:
“Through this purchase, Bank of America is demonstrating its commitment to addressing the climate crisis by directly supporting the development of a new-build renewable energy asset. We’re focused on expanding our suite of sustainable power options, which will soon include an hourly carbon-free solution, to help our customers reach their net zero emissions goals.”
As part of the agreement, Doral will also establish a pollinator habitat at the solar energy facility to enable nature-based benefits in the local community, including a better perennial vegetation that facilitates increased environmental benefits and other healthy habitats for pollinators.
Nick Cohen, President, and CEO of Doral said:
“We are proud that Constellation and Bank of America chose Mammoth to advance their environmental, social and governance (ESG) goals. Investors all over the world are rewarding clean energy efforts and some of the biggest winners are communities that are being revitalized. Even the bees and butterflies are winners as the deal includes special provisions for a pollinator habitat.”
The agreement is expected to begin in late 2024 when the construction of the project is finished and the project becomes operational.