Wells Fargo Inks Deal with Shell, MP2 Energy to Buy Renewable Power

USD 1.98 trillion company Wells Fargo has signed a structured renewable energy (RE) agreement with Shell Energy North America (Shell Energy) and its arm MP2 Energy, to purchase about 1,50,000 MWh of renewable energy every year.

The deal will enable the company to use renewable power to meet 100 per cent of its energy consumption of approx 1,200 Wells Fargo properties in California and the mid-Atlantic states. Besides, it will also meet 100 per cent of the company’s eligible load in California, Delaware, Maryland, New Jersey, Illinois, Ohio, Pennsylvania, and the District of Columbia.

Commenting on the deal, Richard Henderson, Head of Wells Fargo Corporate Properties, said that “entering into long-term contracts that support the development of net-new sources of renewable energy that are geographically close to our facilities is a critical piece of Wells Fargo’s renewable energy strategy.”

Henderson also added that “we appreciate the collaboration with Shell Energy and MP2 in developing these creative transactions to deliver retail renewable energy supply to our California and mid-Atlantic real estate portfolios, and support the communities where we work and live.”

Under the agreement, both Shell Energy and MP2 Energy are using the renewable energy certificates (RECs) generated by projects towards compliance with state renewable energy mandates, directly or through third-party sales, and Wells Fargo will receive substitute national Green-e® certified RECs from other renewable energy projects that satisfy Wells Fargo’s asset technology requirements.

Speaking on the development, Glenn Wright, President of Shell Energy North America, said that “Shell Energy recognizes that consumers and society are demanding more sustainable solutions. We have the expertise and vision to lead in that space. Shell Energy and MP2 Energy are pleased to use our broad capabilities and reach to seamlessly provide this unique offsite renewable retail supply solution to Wells Fargo properties.”

Meanwhile, the term period of the agreement for both Shell Energy and MP2 Energy is for 7 years and 6.7 years respectively.

Earlier, Wells Fargo had announced a 10-year structured renewable energy agreement with Reliant, an NRG Energy company, for procuring nearly 62,000 MWh of solar energy annually to power a bulk of its Texas operations.

The new agreement is the bank’s largest contract to date in support of its corporate strategy to advance the development of new sources of renewable energy in order to meet its electricity needs.