Wells Fargo Expands Renewable Energy Purchases
June 24 2020 - 7:10AM
Business Wire
Deal with Shell Energy and MP2 Energy will provide renewable
power to meet 100% of the company’s eligible load in seven states
and Washington DC
Wells Fargo today announced structured renewable energy
agreements with Shell Energy North America (US), L.P. (Shell
Energy) and its wholly owned subsidiary MP2 Energy LLC (MP2
Energy), to secure approximately 150,000 megawatt-hours of
renewable energy annually. This energy addresses 100% of the energy
consumption of approximately 1,200 Wells Fargo properties in
California and the mid-Atlantic states, and meets 100% of the
company’s eligible load in California, Delaware, Maryland, New
Jersey, Illinois, Ohio, Pennsylvania, and the District of
Columbia.
Wells Fargo’s commitment supports the development of new
utility-scale solar installations in Riverside County, CA; Prince
George’s County, VA; Chesapeake County, VA; and Appomattox County,
VA, which will increase renewable energy flowing into the
California ISO (CAISO) and PJM Interconnections. These new energy
sources will also reduce overall carbon emissions, create jobs, and
support resiliency efforts in the respective regions. As part of
the agreement, Shell Energy and MP2 Energy are using the renewable
energy certificates (RECs) generated by the projects towards
compliance with state renewable energy mandates, directly or
through third-party sales, and Wells Fargo will receive substitute
national Green-e® certified RECs from other renewable energy
projects that satisfy Wells Fargo’s asset technology
requirements.
The deal announced today represents an innovative solution to
provide both the power and RECs from multiple locations and
independent system operators to Wells Fargo properties. The Shell
Energy and MP2 Energy contracts are for 7- and 6.7-year terms,
respectively.
“Entering into long-term contracts that support the development
of net-new sources of renewable energy that are geographically
close to our facilities is a critical piece of Wells Fargo’s
renewable energy strategy,” said Richard Henderson, Head of Wells
Fargo Corporate Properties. “We appreciate the collaboration with
Shell Energy and MP2 in developing these creative transactions to
deliver retail renewable energy supply to our California and
mid-Atlantic real estate portfolios, and support the communities
where we work and live.”
“Shell Energy recognizes that consumers and society are
demanding more sustainable solutions. We have the expertise and
vision to lead in that space,” said Glenn Wright, President of
Shell Energy North America. “Shell Energy and MP2 Energy are
pleased to use our broad capabilities and reach to seamlessly
provide this unique offsite renewable retail supply solution to
Wells Fargo properties.”
Achieving Renewable Energy Goals
Wells Fargo has been meeting 100% of its annual global
electricity requirements with renewable energy since 2017,
primarily through the purchase of RECs, which satisfied the first
part of a two-pronged 2020 renewable energy goal set in 2016. The
company is now working to fulfill the second part of that
commitment — to transition to a higher mix of long-term renewable
energy contracts and significantly increase deployment of on-site
generation in order to support the development of net-new sources
of renewable energy by the close of 2020.
In 2019, Wells Fargo announced a deal with Reliant, an NRG
Energy company, to purchase 100% of the bank’s total annual
requirements in the Electric Reliability Council of Texas (ERCOT)
region, approximately 400 locations, from a new solar facility to
be built in west Texas. Also in 2019, the bank entered into a
subscription agreement with Salt River Project Agricultural
Improvement and Power District (“SRP”) to receive 6.1 megawatts
output of a new 100-megawatt solar project to be located in Pinal
County, AZ, which will meet 28% of its electricity needs in the SRP
Arizona footprint. Wells Fargo expects to close additional
long-term renewable energy purchase contracts and on-site solar
deals later this year.
Financing Renewable Energy
Wells Fargo is a leader in financing large-scale wind, solar,
and other renewable energy projects. The company made its first tax
equity commitment in 2006; since then, it has become one of the
leading investors in the renewable energy space, providing more
than $8 billion in tax equity financing to customers in support of
more than 400 projects. At the close of 2019, Wells Fargo’s tax
equity investments represented 10.3% of all solar and wind
generation capacity nationwide.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.98 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investment and mortgage products and services, as well as consumer
and commercial finance, through 7,400 locations, more than 13,000
ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 31 countries and territories to support customers who
conduct business in the global economy. With approximately 263,000
team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 30 on
Fortune’s 2020 rankings of America’s largest corporations. News,
insights and perspectives from Wells Fargo are also available at
Wells Fargo Stories. Additional information may be found at
www.wellsfargo.com | Twitter: @WellsFargo.
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E.J. Bernacki ejbernacki@wellsfargo.com +1 415-823-3523
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