RBC signs second long-term renewable energy Power Purchase Agreement

RBC announced the signing of its second long-term, renewable energy Power Purchase Agreement (PPA). The power purchased directly contributes to two key targets of the RBC Climate Blueprint – to reduce emissions by 70% and to source 100% of its electricity from renewable and non-emitting sources, both by 2025. Other commitments outlined in the RBC Climate Blueprint include $500 billion in sustainable financing by 2025 and reaching net-zero emissions in its lending by 2050.

The agreement was signed with Berkshire Hathaway Energy Canada (BHE Canada) to directly support the development of their new 130 MW Rattlesnake Ridge Wind Power Project in Medicine Hat, Alberta, Canada anticipated to complete construction and begin producing renewable power by May 2022.

The construction of the project’s 26 wind turbines is expected to employ 150 construction workers at peak development. Once operational, the project is expected to inject $56 million of capital investment into the local Alberta economy and produce enough energy to power 78,000 local homes annually.

RBC partnered with Bullfrog Power and Shopify, two organizations that are also committed to investing in long-term solutions that address climate change, to support the development of the Rattlesnake Ridge Wind Power Project. The group will purchase a total of 90,000 MWh in renewable energy from the project each year, with each buyer receiving equal thirds through their respective agreement with BHE Canada. While the buyers’ partnership improved access to large-scale energy projects, RBC’s knowledge of the Alberta utility market and experience in power purchase agreements were key to making the deal successful.

RBC remains the first Canadian financial institution to have executed two renewable energy PPAs – signing its inaugural agreement in July 2020 as an industry first. The agreement supported the development of BluEarth Renewables’ Burdett and Yellow Lake Solar Project in Alberta, which successfully began commercial operations in May 2021.

“This agreement, and our partnership with Bullfrog Power and Shopify, is key to achieving our renewable energy goals – which are part of our strategy to drive clean economic growth in partnership with our clients and communities,” said Alex Boulos, VP, Climate Strategy & Governance, RBC. “We are proud to continue leading by example – accelerating our collective transition to net-zero and a sustainable and inclusive future.”

“We need the business community’s support to reach our collective climate goals, and power purchase agreements are the best way for companies to help green Canada’s energy grid,” said Suha Jethalal, President of Bullfrog Power. “We’re thrilled to sign our second PPA alongside RBC, a long-time customer with a strong track record of supporting innovative green energy projects.”

“A global transition to clean energy is critical for powering commerce and entrepreneurs, and working alongside RBC and Bullfrog Power was essential for stacking demand,” said Stacy Kauk, Director of Shopify’s Sustainability Fund. “We’re excited to have signed a PPA that enables a high impact energy grid decarbonization project, and demonstrate another way that Shopify is supporting carbon removal technologies like direct air capture that rely on clean energy.”

“The Rattlesnake Ridge Wind Power Project is the first step of BHE Canada’s journey to invest in renewable energy sources across the country,” said Ed Rihn, Senior Vice President, Government Relations and Corporate Development of BHE Canada. “These power purchase agreements are an example of the demand for clean, renewable energy for Canadian businesses to create a more sustainable future.”

RBC is committed to accelerating the transition to a net-zero economy and a more sustainable and inclusive future. This includes empowering clients on their own paths to net-zero, being an active partner in the global net-zero transition, and holding itself accountable by measuring, reporting, and setting interim targets that underpin its commitments.

To learn more about RBC’s climate commitments and actions, visit: rbc.com/climate.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 88,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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