Rivian and Clearloop Partner on Solar Project That Carves a New Path for More Impactful Corporate Renewable Procurement

Rhea-AI Summary

Rivian has partnered with Clearloop to facilitate its first megawatt of renewable electricity in Tennessee, utilizing a solar project aimed at maximizing carbon reductions. This initiative includes financing for Rivian Waypoints chargers. The project highlights the uneven distribution of renewable energy in the U.S., with Tennessee relying heavily on fossil fuels. Rivian aims for carbon neutrality by 2028, with a commitment to match energy consumption with renewable purchases. The project also allows local utilities to offer green tariffs, attracting businesses seeking to meet renewable energy targets.

Positive

• Financing for 1 megawatt of a 6.75-megawatt solar project highlights Rivian's commitment to renewable energy.
• Partnership enables local utilities to offer green tariffs, potentially increasing local business engagement in renewable energy.

Negative

• Tennessee's grid has only 0.4% solar energy, indicating significant reliance on fossil fuels.
• Current reliance on fossil fuels leads to higher carbon emissions compared to states with greater solar integration.

IRVINE, Calif.--(BUSINESS WIRE)-- Rivian and Nashville-based Clearloop are partnering to bring online Rivian’s first megawatt of renewable electricity in a uniquely impactful way. Their approach brings solar energy to a part of the country where new renewable development can help to maximize system-wide carbon reductions.

The Paris Solar Farm – Puryear in Tennessee will be the first installation in Henry County, which is located on the Sun Belt roughly 100 miles east of Nashville. The project utilizes unique approaches to financing and siting that aim to put renewables on more fossil-fueled grids where they can displace more coal and natural gas.

“Corporations have played a major role in growing renewables, but we’re arriving at a point where we need to evolve our approaches in order to truly decarbonize the nation’s entire grid,” said Laura Zapata, Clearloop co-founder and CEO. “Clearloop is opening up a new solar financing mechanism that focuses on the carbon impacts rather than the megawatt hours. Rivian’s willingness to think creatively and take this different path is a key enabler.”

Rivian provided upfront financing for one megawatt of the 6.75-megawatt project, which will cover electricity used by Rivian Waypoints chargers planned for Tennessee state parks as well as other clean energy commitments in the region. Rivian’s capital helped to kickstart construction of the overall project and demonstrates corporate demand for renewable power in the region, Clearloop leaders say.

Power purchase agreements – long-term contracts for a certain amount of renewable power and the associated environmental attributes at a set price – have driven the lion’s share of new corporate renewable projects. While they’ve been impactful in bringing new clean energy online, they’re scaling quickly primarily in states with liquid wholesale electricity markets or retail choice, where the majority of corporations have focused their investments. That has led to an uneven distribution of solar and wind, with states like California and Texas well-subscribed but others, notably in the Southeast and Mountain West, still rely on comparatively fewer renewables and more fossil fuels. This means that access to clean energy is not equitable across the country. Tennessee’s grid, for example, is powered by 0.4% solar, while electricity in California is produced by nearly 16% solar.

As a result, a megawatt hour of electricity in Tennessee emits around 32% more carbon than a megawatt hour in Northern California, according to WattTime, a non-profit that tracks the carbon emissions that renewables avoid. And each new renewable project that goes to a place more like Northern California over a place like Tennessee increases that disparity and has a smaller system-wide emissions reductions impact.

“The carbon consequences go beyond state lines,” said Andrew Peterman, director of renewable energy at Rivian. “Given the urgency with which we need to transition to more sustainable energy systems, the system-wide impacts matter. That’s why we’re being thoughtful from the very first steps on our path to carbon neutrality.”

Rivian aspires to achieve carbon neutrality in its own operations – Scopes 1 and 2 as defined by the Greenhouse Gas Protocol – by 2028, and in categories within Scope 3 by 2032. Scope 3 encompasses the full value chain from suppliers to vehicle charging. The company is building charging networks across the US and Canada and plans to match every kilowatt hour Rivian owners drive with renewable energy purchases on an annual basis – whether vehicles are charged at home, a Rivian charging network charger or at a partner network charging site.

In addition to the partnership between Rivian and Clearloop, the Paris Solar Farm – Puryear is also enabled by a recent Tennessee Valley Authority (TVA) provision that allows local electricity providers within its jurisdiction to source 5% of their power from renewables developed by entities other than TVA. Local power company Paris BPU, which serves Henry County, is among the first to use the provision. The solar farm allows the utility to offer its first green tariff, which allows local companies to purchase the environmental attributes the new solar provides, and helps meet their own renewable energy targets cost effectively in their own backyards.

“We’re seeing a lot of interest from local businesses, and we’re pleased we can help them meet their targets while also generating revenue that helps keep our rates stable for our customers,” said Terry Wimberley, Paris BPU president and CEO. “As part of Silicon Ranch, Clearloop’s partnership with Rivian showed us how as a rural power company we can use renewable energy certificates as an economic development tool for our community.”

About Rivian

Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation. Rivian designs, develops, and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. Rivian complements its vehicles with a full suite of proprietary, value-added services that address the entire lifecycle of the vehicle and deepen its customer relationships. Learn more about the company, products, and careers at rivian.com.

About Clearloop

Clearloop, a Silicon Ranch company, partners with companies of all sizes to meet ambitious ESG goals by reclaiming their carbon footprint, expanding access to clean energy, and cleaning up the grid through the construction of new solar projects in American communities otherwise getting left behind.

Clearloop uses solar capacity (measured in watts) as the mechanism to reclaim the carbon emissions from the grid. That means that when corporate climate leaders partner with Clearloop to meet their net-zero and ESG goals, they’re helping to build brand new solar farms and spur economic investment in communities across the country. We're shifting the way corporate investments reduce carbon by bringing solar projects to regions of the country with disproportionately carbon-intense electricity generation. We believe doing things this way will achieve deeper, and faster emissions reductions. It will also bring good-paying clean energy jobs and catalyze investments in regions of the country that vitally need them. Clearloop, which was recently acquired by one of the largest American Independent Power Producers, Silicon Ranch, is doubling down on its founding-mission to ensure that the innovation and benefits of new clean energy investments reach all communities around our country equally, starting with the communities in our own backyard. To learn more, visit clearloop.us and follow on Instagram, Twitter, and LinkedIn.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the timing of our achieving carbon neutrality. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “aspires,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions.

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, and our other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005699/en/

Media contacts:

Rivian: Amy Mast, media@rivian.com

Clearloop: Katie Jacobs, katie@qh-pr.com

Source: Rivian

FAQ

What is Rivian's renewable energy initiative in Tennessee?

Rivian is partnering with Clearloop to support its first megawatt of renewable electricity through a solar project in Tennessee.

How does Rivian plan to achieve carbon neutrality?

Rivian aims for carbon neutrality in its operations by 2028 and in its supply chain by 2032.

What is the significance of the solar project in Puryear, Tennessee?

The project will help Rivian's Waypoints chargers and support local efforts to increase renewable energy usage.

What percentage of Tennessee's grid is powered by solar?

Tennessee's grid is currently powered by only 0.4% solar energy.

How does the partnership with Clearloop benefit local businesses?

The partnership allows local utilities to offer green tariffs, enabling businesses to meet their renewable energy targets.