BALTIMORE — Constellation, an Exelon company and a leading competitive energy provider, announced today that a 108 MW agreement is in place to help three major commercial customers power their operations with clean renewable energy.
Based on sizable commitments from Kimberly-Clark, a global personal care corporation; Hewlett Packard Enterprise (HPE), a global leader in supercomputing, next generation storage, and networking solutions; and Manheim, a Cox Automotive brand and a leading provider of vehicle remarketing services, Constellation has agreed to purchase power and project-specific renewable energy certificates (RECs) from the Rayos del Sol Solar Project, currently under development in Cameron County, Texas. 174 Power Global, a leading solar and energy storage company, is building the solar farm, which is expected to achieve commercial operation in 2022.
To simplify the purchase, each of the three customers will use Constellation’s Offsite Renewables (CORe) retail power product, which enables the development of, and increases access to, renewable energy for businesses by removing the significant hurdles associated with traditional offsite power purchase agreements (PPAs). As part of this transaction, Constellation will purchase energy and RECs from Rayos del Sol and will then sell the power and project-specific RECs to the customers’ retail accounts.
By combining the simplified contracting and aggregation process of CORe with the commitment and involvement from sustainability-minded companies such as these, Constellation is able to offer more customers access to the economic and sustainability benefits of large-scale, offsite renewable energy projects.
The 10-year customer agreements, which begin in 2022, are part of Exelon’s broader commitment to advance zero-carbon energy locally and nationally, address climate change, and achieve a cleaner energy future.
“Constellation prides itself on simplifying the complex world of energy while offering clean energy solutions that help our customers reduce their carbon footprints and aggressively meet their sustainably goals,” said Jim McHugh, CEO of Constellation. “We’re excited to work with Kimberly-Clark, HPE, and Manheim on proactively supporting the new-build of a renewable energy asset and are pleased that our CORe product will help them deliver on their respective environmental commitments.”
Collectively, the companies’ commitment is expected to help avoid more than 153,000 metric tons in CO2 emissions annually, the equivalent of removing approximately 33,000 passenger vehicles from the road in one year, according to U.S. Environmental Protection Agency estimates.
“174 Power Global is pleased to work with Constellation to build a highly productive, utility-scale solar power facility that will deliver clean power to Constellation’s major commercial customers,” said 174 Power Global President and CEO, Henry Yun, PhD. “We applaud Kimberly-Clark, HPE, and Manheim for their commitment to pursuing sustainable operations and choosing solar power as an alternative energy source.”
Earlier this year, Kimberly-Clark announced ambitious new goals to reduce the carbon footprint of its operations and supply chain for its trusted brands by 2030, with expanded new targets for greenhouse gas (GHG) emissions approved by the Science Based Targets initiative (SBTi) and aligned with the goals of the Paris Climate Agreement.
“We know that a healthy environment is just as essential as diapers to a baby’s development, and parents want to provide the best products for their baby with the smallest environmental impact possible,” said Rebecca Dunphey, president of Kimberly-Clark’s North American personal care business. “Through this investment, which will offset energy consumption at our Paris, Texas facility, we’re proud to soon be manufacturing the majority of our Huggies®, Pull-Ups®, GoodNites® and Little Swimmers® products sold in North America with renewable energy.”
“As we transform our business to become the edge-to-cloud platform-as-a-service company, we are maintaining our focus on environmental sustainability to guide our long-term success,” said Antonio Neri, president and CEO, HPE. “HPE is committed to being net zero by 2050, with intermediate goals to reduce our operational GHG emissions by 55% compared to 2016 levels and source 50% of total electricity consumption in our operations from renewables by 2025.”
Manheim operates the largest wholesale vehicle marketplace and offers clients services that range from digital and physical auctions to logistics, reconditioning, and more. Conservation is a big part of Manheim’s culture, fueled by a strong commitment to sustainability that runs throughout all divisions of its family-owned parent company, Cox Enterprises. In 2007, Cox created a national sustainability program called Cox Conserves, committing to aggressive goals of sending zero waste to landfill and becoming carbon and water neutral.
“We are deeply committed to building a brighter future for generations to come, and that starts with being good stewards of the planet,” said Nick Boris, regional vice president, Production West, at Manheim. “With this agreement, we will power four of our locations across Houston and Dallas with 100% renewable solar energy — reducing our carbon footprint and driving positive change in our local communities.”
Supporting corporate customers of all sizes, Constellation’s CORe product, to date, is expected to prevent the emission of more than 500,000 metric tons of CO2 annually.