PNC Bank To Support Clean Energy in New Partnership with Constellation

PNC has signed an agreement with a clean energy company, Constellation Energy Corporation, to finance about 50 percent of its legacy operations. The long-term deal will power Constellation’s renewable supply activities in Ohio, Maryland, Pennsylvania, the District of Columbia, New Jersey, Delaware, and parts of Illinois.

The power purchase agreement(PPA) will last for 15 years. During this period, Constellation will supply PNC Bank with about 148 million kilowatt hours of energy per year, matching it with Green-e Energy Certified Renewable Energy Certificates (RECs) from other renewable facilities. This agreement will help PNC bank reduce its carbon emission history of over 55,000 metric tons annually. To keep up with the deal, Constellation will sign a separate power purchase agreement with Mammoth Central to acquire 78 megawatts of energy.

‘The climate crisis requires all institutions, from governments to corporations to NGOs and beyond, to work together to apply their expertise and resources in ways that can truly move the needle,’ said Lora Phillips, SVP and director of PNC’s Environmental, Social and Governance practice. ‘As PNC continues to execute our Climate Action Strategy, we’re committed to taking action right now on those areas we can control, and to laying a solid foundation for the work that is still to come.’

Mammoth Solar Project

Mammoth Central Solar Project represents USA’s next largest solar project. The project is the third and final phase of the Mammoth project developed in Starke and Pulaski counties. Mammoth north, the first phase, recently closed the construction financing. The three phases, Mammoth Central, Mammoth South, and Mammoth North, will make 1.3 gigawatts AC of solar power available to the market. Israel-based energy developer, Doral Renewables LLC, secured an injection funding of $392million from Deutsche Bank, New York Branch. The funds will ensure that Mammoth Solar is in operation by 2024 and partners with several customers across the US to provide solar energy.

Last month, the Bank of America signed a deal with Constellation to buy power and project-specified renewable energy certificates(RECs). The 160 megawatts portion of the Mammoth Central project will supply power to the Bank. The contract is also a 15-year contract which will provide 17 percent of the Bank’s electricity through solar power. It will also reduce carbon emissions by over 95,000 metric tons annually. Constellation will supply energy, as the Bank will cover the energy company’s operations in Delaware, Pennsylvania, and Virginia.

Alex Liftman, Global Environmental executive at Bank of America, said, ‘Supporting utility-scale solar energy projects like this one demonstrates our strong commitment to net zero before 2050. This initiative will enable us to reduce our operational impact on the environment and help drive more renewable energy development in our local communities. We must accelerate the low-carbon transition by developing and deploying more low-carbon solutions, including a sustainable electric grid.’

PNC Bank is one of the largest diversified financial institutions in the US, with a flair for strong relationships among individual customers and communities. It has invested nearly $2.3billion in green energy since 2014. In 2021, it purchased 150kWh of green power to meet 46 percent of its electricity needs. Additionally, it pledged to make $20 billion available as a green bond and establish Sustainable Finance Practices to help clients develop their sustainability ideas.

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