Constellation Inks 140 MW Agreement to Supply Commercial Customers with Solar Energy
August 25, 2021
BALTIMORE (August 25, 2021) — Constellation, a leading competitive energy and energy solutions provider, announced today that an agreement is in place to help PepsiCo, McCormick & Company, Best Buy and ViacomCBS’ KTVT and KTXA TV stations power their operations with clean, renewable energy from the 200 MW Big Star Solar Project, currently under development in Bastrop County, Texas.
Major customer commitments resulted in Constellation’s agreement to purchase power and project-specific renewable energy certificates (RECs) equal to a 140 MW section of Big Star. Each customer has signed an equivalent long-term agreement with Constellation to receive energy and RECs from the Big Star project as part of their retail electric supply contract. RWE Renewables, one the world’s leading renewable energy companies, is building the solar project, which is expected to reach commercial operation by Q2 2022.
“This deal demonstrates the collective positive impact made possible by customers who share an authentic commitment to addressing climate change and reducing their respective carbon footprints,” said Jim McHugh, CEO, Constellation. “We take pride in providing a clean energy solution that helps leading companies such as these take proactive steps to meeting their environmental goals through renewable supply.”
“As one of the world’s leading renewable energy companies, we are committed to contributing to the energy transition and helping power the U.S. economy,” said Silvia Ortín, CEO, Onshore Wind and PV, RWE Renewables. “Our Big Star solar facility is well-placed to provide Constellation and its major commercial customers with a supply of green energy for their operations.”
To simplify the purchase, each of the customers will use the Constellation Offsite Renewables (CORe) retail power product, which increases businesses’ access to new-build renewable energy projects by removing the significant hurdles associated with traditional offsite power purchase agreements (PPAs).
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 begin in 2022.
Collectively, the companies’ commitment is expected to help reduce carbon dioxide emissions associated with their energy use by more than 257,000 metric tons each year, the equivalent of removing nearly 56,000 passenger vehicles from the road in one year, according to U.S. Environmental Protection Agency estimates.
To view customer quotes and learn more about each company’s sustainability goals, please see the Customer Info Sheet below.
Customer Info Sheet
PepsiCo aims to use its scale, reach and expertise to help build a more sustainable food system that can meet human needs for nutrition and enjoyment and continue to drive economic and social development, without exceeding the natural boundaries of the planet. Learn more about PepsiCo’s progress in their 2020 Sustainability Report, including an ambitious climate target to achieve net-zero emissions by 2040 – one decade earlier than called for in the Paris Agreement.
“Sourcing renewable energy is a critical step in our journey to more than double our science-based climate goal: reducing GHG emissions by more than 40% by 2030 across our value chain and our pledge to achieve net-zero emissions by 2040,” said Ryan Spicer, Senior Manager of Sustainability, PepsiCo. “We are excited to team with Constellation to power our operations with clean, renewable energy to help achieve our goals and be part of the solution by developing brand new sources of renewable energy.”
McCormick & Company’s work to do what’s right for people, communities and the planet underscores its sustainability commitments to reduce its impact on the environment. McCormick has outlined a set of 2025 goals to reduce greenhouse gas emissions, increase the use of packaging that can be reused, recycled or repurposed, reduce waste and water use as well as increase investment in renewable energy sources. Energy generated from the Big Star solar project will allow McCormick to power both its Dallas manufacturing plant and distribution center with 100% renewable electricity. Additional details about McCormick’s sustainability commitments can be found in the Company’s Purpose Led Performance Report.
“McCormick is proud to be among the early supporters of the Big Star solar project, which highlights our commitment to reduce our impact on the environment by transitioning to clean, renewable energy sources,” said Lawrence Kurzius, President, Chairman and CEO, McCormick & Company. “The Big Star project in Texas and the Skipjack initiative, which will power all of our existing Maryland and New Jersey facilities with 100% renewable energy by 2022, are already having a positive impact on our ability to reduce overall emissions and combat climate change.”
Since 2009, Best Buy has accelerated its environmental goals, introducing a number of sustainability programs that touch every part of its business, reducing its carbon emissions by 61%. To further its efforts to create a more sustainable planet, the company also joined The Climate Pledge last year, making a commitment to be carbon neutral across the business by 2040 — a decade faster than its previous goal of 2050. To learn more about Best Buy’s sustainability goals and how the company is helping customers reduce their carbon footprint, visit BestBuy.com/sustainability.
“Sustainability is at the core of what we do at Best Buy and we are committed to be carbon neutral across our business by 2040,” said Tim Dunn, head of environmental sustainability at Best Buy. “We are proud to invest in renewable energy solutions that address climate change in our operations and communities across the country. With this agreement, we will power 57 of our stores in Texas with clean, renewable energy per year.”
ViacomCBS released its first Environmental, Social and Governance (ESG) Report, Action: ESG at ViacomCBS, highlighting how the company is addressing the ESG impacts that are most important to its business and stakeholders. The report focuses on data through 2019 and the company’s global ESG priorities to date in three core areas: On-screen Content and Social Impact, Workforce and Culture and Sustainable Production and Operations.
“As a company that works across media and entertainment, ViacomCBS is acutely aware of our responsibility to inform our global audiences of the importance of sustainability and, at the same time, continually take action to reduce the physical impact of our operations,” said Crystal Barnes, senior vice president for Corporate Social Responsibility and ESG Strategy, ViacomCBS. “That’s a longstanding commitment made at the highest levels of our company, and signing on to this agreement to power our Dallas-Fort Worth stations KTVT-TV and KTXA-TV with solar energy is just one example of our multifaceted approach to sustainability.”
Constellation is a leading competitive retail supplier of power, natural gas and clean energy solutions for homes and businesses across the continental United States. Constellation's family of retail businesses serves approximately 2 million residential, public sector and business customers, including three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's leading competitive energy provider, with 2020 revenues of approximately $33 billion, and more than 30,000 megawatts of owned capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.