Bank of America buys Indiana solar power, RECs

Bank of America will receive electricity and renewable energy certificates (RECs) from a solar farm spanning two counties in Indiana.

Bank of America said it has signed to a 15-year arrangement with energy supplier Constellation for a 160MW share of the 600MW Mammoth Central solar farm being developed in Starke and Pulaski counties by Tel Aviv-based company Doral.

A "portion" of the RECs will be retired on Bank of America's behalf over the duration of the arrangement. The contract will allow the bank to attribute roughly 17pc of its global electricity use to renewable energy.

The agreement comes through a retail supply contract between Constellation and Bank of America. The contract will take effect when the project comes on line, expected in late 2024, and curb greenhouse gas (GHG) emissions associated with the bank's energy use by over 95,000 metric tonnes/yr, the equivalent of removing 20,000 light-duty vehicles from the roads during the same span.

Constellation and Doral have also secured agreements with three other customers for another 140MW and RECs from the project. Constellation plans to announce the buyers at a later date.

Mammoth Central is the final phase of the larger 1,300MW Mammoth Solar project, which includes two other stages, Mammoth North and Mammoth South. Doral recently secured tax equity financing from Bank of America for the 400MW Mammoth North portion of the project, which will allow its development to move forward.

Mammoth Central is the only part of the larger project with which Constellation has an agreement.

Doral has signed power purchase agreements with utility American Electric Power for the other two phases. Doral did not immediately answer a request for additional details.

Bank of America has purchased 100pc renewable energy since 2019, the same year it reached carbon neutrality for its operations. The company in 2020 finalized deals worth a combined 500,000MWh/yr of solar power and RECs for its operations in North Carolina, South Carolina and Texas.

The bank by 2030 aims to reduce by 75pc its location-based GHGs from its operations and power use, emissions reporting categories known as scopes 1 and 2, respectively. Location-based accounting covers a company's emissions based on its physical location, while the market-based approach deals with its power purchasing decisions, which enables instruments like unbundled RECs to come into play.

The company's total location-based scope 1 and 2 emissions totaled roughly 711,000t in 2020.

By Patrick Zemanek