McDonald’s, Apex, and Ares Announce Restaurant Company’s First-Ever Large-Scale U.S. Virtual Renewable Power Purchase Agreement
220 MW VPPA with Aviator Wind West to Advance Fortune 500 Corporate Toward Climate Action Target
Charlottesville, VA – November 7, 2019 – McDonald’s, Apex Clean Energy, and Ares Management Corporation’s (NYSE: ARES) Infrastructure and Power strategy, today announced a 220 MW virtual renewable power purchase agreement (PPA) between McDonald’s (NYSE: MCD) and Aviator Wind West, a portion of the Aviator Wind project located in Coke County, Texas.
The virtual PPA, negotiated by Ares Management and Apex, represents the first wind energy contract signed by McDonald’s and will help the iconic company make strides toward its Climate Action Target to reduce GHG emissions related to McDonald’s restaurants and offices by 36% by 2030. The agreement with Aviator Wind West, together with a virtual solar power purchase agreement, positions McDonald’s to add more renewable energy to the grid than any other U.S. restaurant company to date.
“As we look at the most pressing social and environmental challenges facing the world today, McDonald’s has a responsibility to take action, and our customers expect us to do what is right for the planet,” said Francesca DeBiase, chief supply chain and sustainability officer, McDonald’s. “This U.S. wind project represents a significant step in our work to address climate change, building on years of renewable energy sourcing in many of our European markets. We want to keep this momentum going, and we’re excited for what’s next.”
The energy generated for the virtual power purchase agreement will be equivalent to 1,300 McDonald’s restaurants’ worth of electricity.
“By developing a clear science-based target for reducing carbon emissions and working to achieve that target through such a significant renewable energy purchase at Aviator Wind West, McDonald’s is demonstrating its leadership to a global audience,” said Mark Goodwin, president and CEO of Apex Clean Energy. “Apex is proud to partner with McDonald’s in its journey to create a better future for people around the world.”
At 525 MW, the Aviator Wind project, developed by Apex and owned by funds managed by Ares Infrastructure and Power, will be the largest single-phase project in ERCOT and the largest single-phase, single-site project in the United States.
“The growth in long-term corporate offtake agreements is a testament to the efficient and sustainable low-cost power in the renewables industry,” said Keith Derman, co-head of Ares Infrastructure and Power. “We look forward to working with McDonald’s on Aviator Wind West and assisting other leading corporations in utilizing renewable energy as part of their commitment to clean energy.”
Apex Clean Energy will provide both construction and asset management services for the project, which will be operational in 2020. The project will create approximately 300 short-term construction jobs and at least nine long-term operations positions, as well as generate approximately $140 million in tax revenue for the local economy.
About Apex Clean Energy
Apex Clean Energy develops, constructs, and operates utility-scale wind and solar power facilities across North America. Our mission-driven team of more than 200 renewable energy experts uses a data-focused approach and an unrivaled portfolio of projects to create solutions for the world’s most innovative and forward-thinking customers. For more information on how Apex is leading the transition to a clean energy future, visit www.apexcleanenergy.com or follow us on Facebook, Twitter, and LinkedIn.
McDonald’s serves a variety of menu options made with quality ingredients to more than 25 million customers every day. Approximately 95% of McDonald’s nearly 14,000 U.S. restaurants are independently owned and operated by businessmen and women. For more information, visit www.mcdonalds.com, or follow us on Twitter @McDonalds and Facebook at www.facebook.com/mcdonalds.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management’s global platform had $144 billion of assets under management as of September 30, 2019 and employs approximately 1,200 employees in over 20 offices across four continents. Please visit www.aresmgmt.com for additional information.
About Ares Infrastructure and Power
Ares Infrastructure and Power strategy seeks to provide flexible capital for cash-generating assets across the climate infrastructure, natural gas generation, and energy transportation sectors. Ares Infrastructure and Power leverages a broadly skilled and cohesive team of more than 25 investment professionals with deep domain experience and has deployed $8 billion of capital in over 140 investments and more than 200 different infrastructure and power assets and companies.
Apex Clean Energy
Cat Strumlauf | Manager, Corporate Communications
Bill Mendel | Mendel Communications