HSBC in the UK to purchase power from 100% renewable sources by 2023

HSBC is expanding its efforts to generate its own renewable, zero-carbon electricity in the UK through an innovative Power Purchase Agreement (PPA) with Capital Dynamics, an independent global private asset management firm and one of the world’s leading renewable energy investment managers, to develop the Sorbie Wind Farm Project in Ayrshire, south-west of Glasgow.

This PPA will be HSBC’s fourth project in the UK supporting wind or solar projects, and will result in c.90% of the bank’s UK electricity being sourced from renewable projects. An additional 10% will be topped up with green tariffs, making 100% of the electricity purchased by HSBC in the UK to be from renewable sources by 2023.

Emma Bunnell, Chief Operating Officer at HSBC UK said: “We are excited to help create new renewable energy sources in the UK, with benefits for us as well as our customers and the wider communities we serve.

A key part of HSBC’s net zero operation’s strategy is to replace brown energy with green, and entering into this PPA allows us to achieve this in the UK. Our strategy is to follow the 3Rs: Reduce consumption, replace to lower carbon alternatives, and lastly, remove remaining emissions when the first two are not possible. I’m delighted that we’re on track to source power solely from renewable sources in the UK by 2023, well in advance of our 2030 target.”

The Sorbie Wind Farm Project will include three turbines with a total capacity of 12.6MW. Due to begin generation in early 2023, HSBC has committed to purchasing energy from the wind farm for 15 years.

Barney Coles, Managing Director, Co-head of Clean Energy Infrastructure at Capital Dynamics said: “We are delighted that HSBC has joined Capital Dynamics as a key partner in developing the Sorbie Wind Farm – adding a critical source of clean, low-cost energy to the UK’s power generation fleet. Strong commitments to renewable energy from companies like HSBC are essential to helping Europe lead the global energy transition and meet its emission targets. We look forward to working with HSBC and other multi-national corporations in Europe to develop affordable, subsidy-free projects that will accelerate private sector participation in the energy transition.”

The new agreement follows HSBC’s global ambition to become a net zero bank, including reaching net zero in its operations and supply chain by 2030 or sooner.

Capital Dynamics has partnered with Energiekontor who, in addition to developing Sorbie, will provide construction management and ongoing operational support services to the wind farm.

Advisory services for the project have also been provided to HSBC by Ernst & Young LLP and Norton Rose Fulbright.

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