Sumitomo Corporation Expands Renewable Energy Portoflio as Sole Owner of Mesquite Creek Wind Farm in Texas Exclusive Long Term Agreement with Mars Inc. to Purchase Renewable Energy from Wind Farm
Sumitomo Corporation of Americas (SCOA) and Sumitomo Corporation (SC) (collectively Sumitomo) have acquired the remaining shares of the Mesquite Creek Wind Farm in Western Texas from co-developer BNB Renewable Energy (BNB) to achieve 100% ownership of the project. Sumitomo also announced that they have entered into a long-term agreement with Mars Inc. to purchase the renewable energy from the wind farm which will allow Mars to be effectively carbon neutral in their electricity consumption for 20+ years.
Sumitomo secured financing for the project through funding from a syndicate of banks including, Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and Mizuho Bank.
“We are pleased to be partnered with Mars to help them reduce their carbon footprint and allow them to be carbon-neutral in the U.S. Mesquite Creek is a landmark project for Sumitomo and further stregthens our commitment to renewable energy and the U.S. market.”, said William Cannon, Vice President, Sumitomo Corporation of Americas.
BNB, the originating developer of the project, entered into a joint venture with Sumitomo in August 2013 and they have since worked together to bring the 25,000 acre wind farm project to fruition. Construction began in October 2013 on Mesquite Creek Wind, a 200MW wind farm located in Borden and Dawson Counties, near Lamesa, Texas. Blattner Energy Inc, is constructing the wind farm, and electricity will be generated via 118 1.7MW GE turbines. Turbine delivery is scheduled to begin at the end of the summer with commerical operations expected for the second quarter of 2015.
This 20-year renewable energy contract marks the biggest long-term commitment to renewable energy use of any food manfacturing business in the U.S. Mars will receive all of the Renewable Energy Credits generated by the windfarm, largely offsetting the company’s North American carbon footprint in a single transaction. Mesquite Creek will generate 100% of the electricity needs of Mars’ U.S. operations, which covers 70 sites including 37 factories and 25,000 associates. According to Mars, Inc. the energy created from the wind farm will represent 24 percent of Mars’ total global factory and office carbon footprint and 12 percent of its energy use globally – equivalent to making 13 billion SNICKERS® bars or powering 61,000 U.S. households.
Barry Parkin, chief sustainability officer, Mars, Inc., commented, “We are committed to doing our part to limit climate change. We are therefore delighted to be announcing this major renewable project that takes us a big step towards our goals of becoming carbon neutral in our operations. This is an innovative appropach that makes great business and environmental sense.”
Mesquite Creek will make it possible for Mars to reach its aggressive goal of achieving carbon neutral energy consumption some 25 years ahead of its 2040 target.
“By making this extraordinary commitment to buy renewable energy, Mars is sending a clear message that companies, private and public, have the power to lead the world on climate change. It’s good for the bottom line. It’s good for the environment, and projects like this leave a lasting legacy of values we hold dear. Thank you Mars and Sumitomo, “ said Jonathan Butcher, Sr., a founder of BNB.
Sumitomo continues to grow its renewable energy business and has extensive experience developing, operating and owning power generating facilities such as wind, geothermal, biomass and solar business around the world. Ownership of the Mesquite Creek Wind project is Sumitomo’s sixth renewable energy investment in the U.S.
Other investments include:
- 845-MW Shepherds Flat Wind Farm in Oregon
- Two Kansas wind farms, the 131-MW Cimarron II and 168-MW Ironwood projects
- Stanton wind project, a 120-MW wind power facility in Texas
- Desert Sunlight, a 550MW solar power project in California
Globally, Sumitomo owns and operates two wind power facilities in Japan and a 50-MW wind facility in China, the largest wind energy market in the world.
Sumitomo has a strong global commitment to sustaining the environment by contributing to environmental businesses. The Company will build upon its ownership of Mesquite Creek Wind and will continue to actively seek opportunities to develop, construct and own wind and other renewable energy projects in the beginning and advanced development phase in the U.S. and Canada. With its global experience in developing, constructing and operating renewable projects, Sumitomo is an attractive long-term investor to any renewable energy developer looking for a strategic partner.
About Sumitomo Corporation of Americas
Established in 1952, and headquartered in New York City, Sumitomo Corporation of Americas (SCOA) has 10 offices in major U.S. cities. SCOA is the largest subsidiary of Sumitomo Corporation, one of the world's leading traders of goods and services. As an integrated business enterprise, the firm has emerged as a major organizer of multinational projects, an expediter of ideas, an important international investor and financier, and a powerful force for distribution of products and global communications through a network of offices worldwide.
For more information visit www.sumitomocorp.com.
About Sumitomo Corporation
Sumitomo Corporation is a leading global trading company, with 115 locations in 66 countries and 24 locations in Japan. The entire Sumitomo Corporation Group consists of nearly 800 companies and more than 70,000 personnel. The SC business is continuously expanding into a diverse range of products and services. Its core business units are Metal Products; Transportation &Construction Systems; Environment & Infrastructure; Media, Network, Lifestyle Related Goods & Services; and Mineral Resources, Energy,Chemical & Electronics.
About Mars, Incorporated
In 1911, Frank C. Mars made the first Mars candies in his Tacoma, Washington kitchen and established Mars' first roots as a confectionery company. In the 1920s, Forrest E. Mars, Sr. joined his father in business and together they launched the MILKY WAY® bar. In 1932, Forrest, Sr. moved to the United Kingdom with a dream of building a business based on the objective of creating a mutuality of benefits for all stakeholders - this objective serves as the foundation of Mars, Incorporated today. Based in McLean, Virginia, Mars has net sales of more than $33 billion, six business segments including Petcare, Chocolate, Wrigley, Food, Drinks, Symbioscience, and more than 75,000 Associates worldwide that are putting its Principles into action to make a difference for people and the planet through its performance.
Mars brands include: Petcare – PEDIGREE®, ROYAL CANIN®, WHISKAS®, BANFIELD® Pet Hospital, CESAR®, SHEBA®, DREAMIES® and NUTRO®; Chocolate – M&M’S®, SNICKERS®, DOVE®, GALAXY®, MARS®, MILKY WAY® and TWIX®; Wrigley – DOUBLEMINT®, EXTRA®, ORBIT® and 5™ chewing gums, SKITTLES® and STARBURST® candies, and ALTOIDS® AND LIFESAVERS® mints. Food – UNCLE BEN’S®, DOLMIO®, EBLY®, MASTERFOODS®, SEEDS OF CHANGE® and ROYCO®; Drinks – ALTERRA COFFEE ROASTERS™, THE BRIGHT TEA COMPANY™, KLIX® and FLAVIA®; Symbioscience – COCOAVIA® and WISDOM PANEL®. For more information, please visit www.mars.com. Follow us: facebook.com/mars, twitter.com/marsglobal, youtube.com/mars, linkedin.com/company/mars
About BNB Renewable Energy Holdings
BNB Renewable Energy Holdings, with offices in New York City, Boston, Austin, Texas, and Exton PA, is a developer of both distributed-generation and utility-scale wind, solar, and biogas power plants and has developed and constructed nearly 500MW of renewable generation throughout the United States. BNB is actively developing more than 1GW of generation, including utility-scale wind and solar in Texas and Mexico and up to 15 inside-the-fence renewable projects for Campbell Soup, Pepperidge Farm, and other Fortune 500 companies. For more information, visit www.bnbrenewables.com