DTE Energy in Detroit today announced it is the first company in Michigan to offer green bonds, which were priced Monday. The $525 million in bonds will finance green investments, including low-carbon projects such as renewable energy and energy efficiency. DTE is the fifth company in the nation to sell green bonds.
“Green bonds will help finance our low-carbon investments, which will enable us to continue moving Michigan toward a cleaner, more sustainable energy future,” says Gerry Anderson, chairman and CEO of DTE Energy. “This is a tangible way for investors to demonstrate their commitment to the environment and is one of many steps in our aggressive plan to reduce carbon emissions by more than 80 percent by 2050. We’re proud to be among the first energy companies to offer this green investment option.”
The bonds have a maturity of 30 years at an annual fixed coupon of 4.05 percent. They are expected to help fund the development and construction of solar arrays and wind farms, including the transmission infrastructure to support renewable energy facilities, as well as strengthen energy efficiency programs.
“A fundamental transformation in the way we produce power in Michigan has already begun,” says Anderson. “As DTE moves toward cleaner energy sources, we are focused on maintaining reliability and keeping energy affordable for our customers.”
In related news, last Friday the Michigan Public Service Commission approved DTE Energy’s gas plant proposal for East China Township.
According to DTE, the plant would power about 850,000 homes beginning in 2022. The utility is scheduled to break ground on the new facility in 2019. The plant is one of the steps the company is taking to reduce carbon emissions by 30 percent by the early 2020s, and more than 80 percent by 2050.