OREANDA-NEWS. 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.

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.

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.