Citizens Signs Power Purchase Agreement with Ørsted to Source 100% Renewable Power for Entire Operational Footprint
Citizens announced that it has entered into a power purchase agreement with Ørsted, supporting the construction of the Sunflower Wind Project, which will match 100% of Citizens’ power consumption across its entire operational footprint with renewable energy credits.
“The Sunflower Wind Project marks an important milestone for Citizens as we continue our journey to support a more sustainable future alongside our customers, colleagues, shareholders and communities,” said Beth Johnson, Chief Experience Officer and Head of ESG at Citizens. “We’re proud that this project will bring more renewable energy into the power grid and stimulate the local economy.”
The Sunflower Wind Project is a 200-Megawatt wind generation facility in Marion County, Kansas. Ørsted began construction of the project in 2022 and by 2023 it is expected to generate enough electricity to power approximately 96,000 homes annually. Citizens’ share of the project is 25.8 MWs.
Citizens is making a long-term commitment to buy a share of the renewable electricity produced by the wind project. The electricity generated will be delivered to and resold in the local electricity grid while Citizens utilizes the associated renewable energy credits (RECs) to achieve 100% renewable power.
Sunflower Wind will create at least 200 jobs during construction and will require ongoing support for operations and maintenance over the 30-year estimated life of the project. It will also inject new revenue into the tax base, generating tens of millions in new property tax revenue over the project life without an increase in demand for local infrastructure, schools, or emergency services.
Ørsted has set science-based climate targets to reduce the environmental impacts of its business, and is committed to decarbonizing its supply chain, while publicly disclosing its progress. The company also has a strong track record of community engagement and support for local economies in the development of renewable energy facilities.
See related article: Citizens Financial Group Releases 2021 Corporate Responsibility Report
“We’re pleased to include Citizens as a new customer to Ørsted and look forward to helping Citizens achieve their renewable electricity goals for many years to come,” said Ben Pratt, Senior Vice President of Markets & Revenue at Ørsted.
Citizens understands that banks play a critical role in accelerating the transition to a lower carbon economy. The Bank’s sustainability strategy includes a commitment to reducing its operational impact on the environment, understanding and managing the risks and opportunities presented by climate change, and helping customers plan for and manage climate change impact.
The Bank seeks to provide financing for green technologies and businesses, such as renewable energy, and to develop sustainability-linked products and innovation. This focus on sustainable growth enables Citizens to better serve clients while at the same time delivering attractive returns for shareholders and addressing one of society’s greatest challenges.
To learn more about Citizens’ sustainability efforts, please read the recently released 2021 Corporate Responsibility Report, Creating a Brighter Tomorrow, which highlights enterprise-wide initiatives that advance the Bank’s commitment to responsible citizenship. Later this year, Citizens will issue its inaugural climate report, aligned with the recommendations from the Task Force on Climate-Related Financial Disclosures.
Citizens was assisted in the execution of the power purchase agreement by Schneider Electric’s Sustainability Business and DLA Piper’s Energy and Natural Resources Group.