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Ripple has partnered with Nelnet Renewable Energy, a business unit of renowned conglomerate Nelnet, in an ESG deal. A press release disclosed this news on October 11, noting the two firms have entered into a joint investment that will see them inject $44 million (£32.32 million) in one of Nelnet’s solar energy investment funds. Reportedly, Ripple contributed the bulk of the funds.
According to the news release, the fund will finance solar energy projects in the US to help the country transition into cleaner and more stable energy. Per Ripple’s Head of Social Impact, Ken Weber, every industry is increasingly focused on a green energy-powered future to ensure sustainability.
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With a future in which the blockchain and cryptocurrencies will power the financial system, Ripple is trying to reduce the carbon footprint of the industry. In so doing, the company seeks to deliver on its promise of helping create a carbon-neutral crypto industry, according to Weber.
Through this initiative, Ripple and Nelnet Renewable Energy will offset approximately 1.5 million tons of Carbon dioxide over the next 35 years. Putting this figure into perspective, the press release pointed out that people would have to use 154 million gallons of gasoline to emit 1.5 million tons of Carbon dioxide.
Setting a precedent for other crypto and blockchain firms
Ripple’s partnership with Nelnet Renewable Energy comes as the US gradually transitions into a Carbon neutral future. The $44 million (£32.32 million) investment will play a significant role in helping the country achieve this feat, with the US Department of Energy projecting that solar energy could account for 45% of all energy in the US by 2050.
Commenting on the join investment with Ripple, Nelnet Renewable Energy’s Executive Director, Scott Gubbels, said,
We are thrilled to have a best-in-class investor platform that enables us to work with investors like Ripple to further our effort toward advancing clean energy generation within the US. Investments like these help create jobs, provide cost-competitive energy to the market, and promote sustainability for years to come.
This news comes as Ripple continues setting an example for other crypto and blockchain companies when it comes to trying to achieve carbon neutrality. Before joining hands with Nelnet Renewable Energy, the company partnered with Energy Web and the Rocky Mountain Institute to decarbonize the XRP Ledge in 2020.
The company is also a member of Crypto Climate Accord, a private sector-headed project, which seeks to decarbonize cryptocurrencies and make the crypto industry 100% renewable by 2030.