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When Sumitomo Corporation announced in 2020 its aim to be net carbon neutral by 2050, the company was embracing the longstanding Sumitomo Corporation value of “contributing broadly to society,” and its commitment to sustainability. To that end, SCOA subsidiary Perennial Power Holdings, Inc. (“PPH”) recently sold all of its 40% limited partnership interest in American Bituminous Power Partners, L.P. (“Ambit”), the owner of a West Virginia-based coal-fired power generation facility. PPH, together with Sumitomo, purchased its portion of in Ambit from Mission Energy for $14.6 million back in 1993.
Through the sale of the Ambit project, Sumitomo Corporation reduced its global carbon footprint by removing more than 910,000 tons of CO2 per year from its portfolio. The company is planning to further reduce its carbon footprint by diversifying the current asset portfolio by eliminating specific coal-fired power generation assets, and increasing its ownership in renewable and gas-fired power generation assets.
“Sustainability and ESG are very important to the entire SC Group and we have taken a leading position with our commitment to be carbon neutral by 2050,” said Bill Cannon, General Manager of SCOA’s Infrastructure Group. “We hope to achieve this goal by investing in new technologies and developing new business models for sustainable energy, while also taking a hard look at our existing portfolio and rebalancing it to be more environmentally friendly.”
The progress of SCOA’s renewable power initiatives reflects the Company’s sustainability standards by addressing energy-related environmental issues that are global in scale and affect future generations. Although exiting Ambit shows movement, the company has done much more. Over the past decade SCOA’s wind power and solar power projects, including Mesquite Creek Wind Farm in Texas, Desert Sunlight Solar Farm in California, and Turquoise Solar Project in Nevada, have increased the company’s renewable energy profile.
“The sale of Ambit is the first step on the journey for us to divest our CO2 intensive investments for cleaner and greener projects, but eco-conscious work is not new for our group,” Cannon explained. “For over 10 years, we have acted as the lynchpin in getting companies partnered with new wind or solar generation projects to provide clean power so they can ultimately attain their green energy targets. Most recently, we are working with some SCOA group companies to develop clean energy alternatives to their power needs – these solutions are expected to not only lower their carbon footprint, but also lead to additional sales as more consumers seek environmentally friendly products and services. Additionally, since we are a global organization; our integrated corporate strength allows us to connect and assist in clean energy initiatives around the world.”
A prime example of this global reach is SC Brazil’s clean water initiatives. BRK Ambiental, an SC group company in Brazil, is bringing clean water to communities throughout the country, changing lives for the better.
“New awareness of a company’s positive environmental strategy is influencing how world leaders and conglomerates spend their dollars, which in turn creates new and myriad opportunities in the renewable energy sector,” Cannon said. “We are right there to partner with companies who value our experience, know-how and longstanding commitment to sustainability.”
Over the past decade SCOA’s wind power and solar power projects, including Mesquite Creek Wind Farm in Texas (right) and Desert Sunlight Solar Farm in California (next page), have increased the company’s renewable energy profile.