B2B energy markets are going green: offsetting emissions by purchasing energy

Dear EarthTalk: What are some of the innovative ways companies are currently accessing renewable energy?

—Peter V., Milwaukee, Wisconsin

Given that energy production is responsible for over 75 percent of global greenhouse gas emissions, and with more and more companies looking to reduce their carbon footprint, it makes sense that a whole new generation of startups will emerge to help business customers connect with green energy producers.

One of these innovative green intermediaries is Copenhagen-based Reel Energy. Businesses looking to reduce their carbon footprint can turn to Reel to provide them with green energy at fixed, low prices for five to 10 years. Reel, in turn, uses these funds to strike deals with solar and wind developers to launch new renewable energy projects. Reel has expanded significantly across Europe in recent years, but you can expect to see more of the company’s offerings in the US and other countries.

Another B2B approach to sourcing green energy is Seattle-based Drift Energy, which helps companies purchase 100% green energy, thereby offsetting other greenhouse gas emissions. Customers sign on the dotted line to purchase all the energy they will need for one to five years, and Drift goes to work providing them with green energy sourced from local wind farms, solar panels and hydroelectric dams. By helping to take the guesswork out of sourcing green energy, Drift can help other companies do the right thing while reaping emissions reduction and PR benefits.

Meanwhile, Clearloop in Nashville, Tennessee, is taking a similar approach, connecting companies looking to reduce their carbon footprint with new sources of green energy. But Clearloop’s version puts an emphasis on environmental justice, using customer funds to start building wind farms and solar panels in traditionally disenfranchised and overly polluted communities in the American South. To date, Clearloop has financed dozens of wind and solar projects in Louisiana, Tennessee and Mississippi.

Another model for green energy matchmaking is LevelTen Energy, also from Seattle, which runs the world’s largest platform connecting buyers and sellers of green energy. LevelTen’s marketplace allows buyers to compare options, receive custom offers, and reduce risk with automated analysis of market price offers. By lowering investment risk and expanding access to green energy, LevelTen streamlines the process of purchasing renewable energy. To date, LevelTen’s trading infrastructure has facilitated approximately 4,500 renewable power purchase agreements (PPAs) that have financed over 1,800 wind, solar and other renewable energy projects in various countries.

Yet another way companies can purchase green energy at fixed prices and reduce their carbon footprint is by bulk purchasing Renewable Energy Certificates (RECs) through Evergreen Renewables. RECs provide proof that one megawatt hour of electricity was generated from a renewable energy source. In a recent transaction arranged by Evergreen and executed on its marketplace, eight brands collectively purchased enough REC units to finance the repowering of a 55-megawatt wind farm in Texas that was otherwise scheduled for demolition. These types of transactions enable even smaller companies to participate in large REC group purchases, further expanding access to green energy.

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