Bank of America Builds on its Environmental Commitment to Power its Operations with Renewable Energy, Signs New Offsite Solar Energy Agreement
Bank of America today announced a 15-year, 160-megawatt agreement with Constellation, a clean energy company, to purchase power and project-specific renewable energy certificates (RECs). This agreement will help Bank of America power approximately 17 percent of its global electricity consumption with clean, renewable energy from a portion of the Mammoth Central project, the third and final phase of the broader Mammoth Solar project, which is currently being developed by Doral Renewables LLC in Starke and Pulaski counties in Indiana.
Bank of America will receive renewable energy and RECs from Mammoth Central as part of its retail electricity supply contract with Constellation, which covers locations in Delaware, Pennsylvania and Virginia. By powering its facilities in these locations with solar energy, Bank of America is expected to reduce greenhouse gas emissions (GHG) associated with its energy use by more than 95,000 metric tons annually. The U.S. Environmental Protection Agency estimates this is equivalent to the emissions of more than 20,000 passenger vehicles driven for one year.
The agreement will begin when the project construction has been completed and the project becomes operational, which is expected in late 2024. By purchasing the RECs, Bank of America is also helping to facilitate the development of this project, which will provide renewable energy to the broader electric grid.
“Supporting utility-scale solar energy projects like this one demonstrates our strong commitment to net zero before 2050,” said Alex Liftman, Global Environmental executive at Bank of America. “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.”
Additionally, as part of the bank’s agreement, Doral will establish a pollinator habitat at the solar energy facility. This will enable nature-based benefits in the local community, including enhanced perennial vegetation that facilitates increased environmental benefits and other healthy habitats for pollinators. Bank of America required pollinator habitat specifications when selecting project partners. A pollinator scorecard is used to ensure the habitat meets the standards outlined by leading environmental nonprofit organizations. Some of the scorecard metrics include how much of the site is covered by wildflowers and native plants, bloom time, the presence of a site management plan, insecticide use, and outreach to the community.
“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,” said Jim McHugh, chief commercial officer, Constellation. “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.”
Bank of America will use the Constellation Offsite Renewables (CORe) retail power product to facilitate its renewable energy transaction. CORe increases businesses’ access to renewable energy projects through the simplicity of a retail power contract.
“We are proud that Constellation and Bank of America chose Mammoth to advance their environmental, social and governance (ESG) goals,” said Nick Cohen, president and CEO of Doral. “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. This commitment from Constellation and Bank of America is further validation to the economic development efforts of Indiana and the community leadership in Starke and Pulaski counties.”
The Mammoth Solar facilities will be built in three phases. Recently Doral Renewables secured tax equity financing from Bank of America for the first phase, Mammoth North. That financing will enable 400-megawatts of new solar power upon completion, the equivalent of powering 64,000 homes in one year.
Bank of America has a long-standing commitment to the environment. Whether it is the purchase of RECs or working with clients to provide tax equity financing for renewable energy projects, these efforts demonstrate Bank of America’s commitment to support clean energy solutions in its communities and chart a path forward to net zero. In 2021, Bank of America announced its goal to achieve net zero before 2050 in its financing activities, operations and supply chain. Also, the company met its carbon neutrality and 100% renewable electricity goals in 2019, a year ahead of schedule. Bank of America has set 2030 environmental operations goals which includes reducing location-based GHG emissions by 75% (Scope 1 and 2) and reducing energy use by 55%. It set its first environmental operations goal in 2005 and has responded to the annual CDP climate change questionnaire since 2003. The company also has more than 18 million square feet of LEED certified space and a goal to achieve green building certifications across 40% of its workspace by 2030. For more information about its environmental operations goals, please visit Bank of America’s ESG website.
Separate from Bank of America’s 160-megawatt agreement at the Mammoth Central site, Constellation and Doral have also entered into agreements with three other customers to purchase an additional 140-megawatts of power and project-specific renewable energy certificates. These purchases in total will support 300-megawatts of the 600-megawatts expected capacity of Mammoth Central. Upon the completion of the entire Mammoth Solar facility, the project will have an estimated capacity of 1.3 gigawatts and be one of the country’s largest solar energy facilities.
Constellation Energy Corporation (Nasdaq: CEG) is the nation’s largest producer of clean, carbon-free energy and a leading supplier of energy products and services to millions of homes, institutional customers, the public sector, community aggregations and businesses, including three fourths of Fortune 100 companies. A Fortune 200 company headquartered in Baltimore, our fleet of nuclear, hydro, wind and solar generation facilities powers more than 20 million homes, providing 10 percent of all carbon-free energy on the grid in the U.S. Our fleet is helping to accelerate the nation’s transition to clean energy with more than 32,400 megawatts of capacity and annual output that is nearly 90 percent carbon-free. We have set a goal to achieve 100 percent carbon-free power generation by 2040 by leveraging innovative technology and enhancing our diverse mix of hydro, wind and solar resources paired with the nation’s largest nuclear fleet. Follow Constellation on Twitter @ConstellationEG.
Doral is a U.S. company owned by Doral Renewable Energy Resources Group (TASE:DORL, “Doral Group”), a publicly traded Israeli renewable energy company, Migdal Group, Israel’s largest insurance company and pension manager, and U.S. members. Doral is developing an 11 GW wind, solar, and storage portfolio across 20 states, eight electricity markets and covering approximately 100,000 acres of land. It has over $2 billion in long term wholesale power purchase agreements with U.S. customers.
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more about our environmental commitment at www.bankofamerica.com/environment.