Citi has signed a new wind energy agreement for its Texas operations.
The power and renewable energy credits (RECs) will come from the 163 MW Midway Wind Project, located in San Patricio County, Texas. Citi is acquiring 64% of the RECs generated by the project, which is being developed by Sammons Renewable Energy. The coastal Texas wind farm is expected to achieve commercial operations in the first half of this year.
The power adds to Citi’s existing renewable supply, contributing to the bank’s goal to supply 100% renewable energy to power its facilities globally by 2020.
“This unique partnership and transaction is reflective of our commitment to help accelerate the global transition to a low-carbon economy,” states Jagdish Rao, head of Citi Enterprise Infrastructure. “These type of investments are good for the environment and pave the way for a sustainable future.”
“As corporate procurement of renewable energy is becoming ever more popular, these types of transactions will become integral in helping scale the market,” adds 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 financing package for the development, construction and operation of the Midway project. This also included an 11-year physical power hedge, agency and 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.