Citizens Signs Power Purchase Agreement to Source 100% Renewable Power for Entire Operational Footprint

Rhea-AI Summary

Citizens has entered into a power purchase agreement with Ørsted to support the construction of the Sunflower Wind Project, aimed at matching 100% of its power consumption with renewable energy credits. This 200-MW facility in Marion County, Kansas is expected to power approximately 96,000 homes annually. Citizens will acquire 25.8 MW from this project, which is anticipated to create at least 200 jobs during construction and generate significant property tax revenue without increasing local infrastructure demands.

Positive

• Citizens' investment in the Sunflower Wind Project promotes sustainability and supports renewable energy adoption.
• The project will create at least 200 jobs during construction.
• Long-term commitment to renewable energy will enhance Citizens' reputation and align with ESG goals.

Negative

• None.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens announced today 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 (MW) 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.

“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.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $226.7 billion in assets as of June 30, 2022. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,200 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

About Ørsted

Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted provides energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target as validated by the Science Based Targets initiative (SBTi). Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2022 index of the Global 100 most sustainable corporations in the world and is recognized on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,836 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the group's revenue was DKK 77.7 billion (EUR 10.4 billion).

View source version on businesswire.com: https://www.businesswire.com/news/home/20220920005326/en/

Media

Rory Sheehan

VP, Media Relations, Citizens

rory.p.sheehan@citizensbank.com

781-655-3931

Source: Citizens Financial Group, Inc.

FAQ

What is the Sunflower Wind Project related to Citizens (CFG)?

The Sunflower Wind Project is a 200-MW wind generation facility that Citizens is supporting through a power purchase agreement, enabling the bank to match its power consumption with renewable energy credits.

How many homes will the Sunflower Wind Project power?

The Sunflower Wind Project is expected to generate enough electricity to power approximately 96,000 homes annually.

What is the significance of Citizens’ power purchase agreement with Ørsted?

The agreement signifies Citizens' commitment to sustainability by ensuring 100% of its power needs are met with renewable energy.

What are the job implications of the Sunflower Wind Project for the local community?

The project is expected to create at least 200 jobs during its construction phase.

How does the Sunflower Wind Project benefit Citizens' shareholders?

The project enhances Citizens' sustainable growth strategy, potentially leading to attractive returns for shareholders.