DULUTH, Minn.--(BUSINESS WIRE)--Oct. 31, 2018--
ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE Inc. (NYSE:
ALE), today closed the approximately $84 million sale of the 48-megawatt
phase two of the Thunder Spirit wind facility in North Dakota to
Montana-Dakota Utilities.
Montana-Dakota Utilities, a division of MDU Resources Group (NYSE: MDU),
which owns and operates Thunder Spirit’s first phase also built by
ALLETE Clean Energy, exercised a purchase option on phase two included
in the project development agreement in March of this year.
ALLETE Clean Energy qualified the project, which brings the Thunder
Spirit site to its 155-megawatt permitted capacity, for federal
renewable energy production tax credits. The wind facility is located
near Hettinger, North Dakota, about 100 miles southwest of Bismarck. The
project includes sixteen 3-megawatt Nordex turbines that will produce
enough energy for about 15,000 homes. Forty-five people were employed
during construction, and 10 will be working at Thunder Spirit I and II
during operation.
In 2014, ALLETE Clean Energy acquired the rights to build the
107.5-megawatt first phase of Thunder Spirit, which includes 43 turbines
and generates enough electricity to power about 30,000 homes. After the
project was completed in 2015, ALLETE Clean Energy sold the wind
facility to Montana-Dakota for $200 million, and Montana-Dakota operates
the wind farm for its customers.
“We are proud to have delivered a competitive energy resource to MDU
that will help meet the growing energy needs of their customers,” said
Al Rudeck, President of ALLETE Clean Energy. “The Thunder Spirit
expansion is part of our growing expertise in the energy industry as we
now will focus our attention on completion of a second new wind project
in North Dakota, the Glen Ullin Energy Center, in as many years, while
advancing our company’s growth strategy as a clean energy developer,
operator and strategic owner.”
It has been a busy construction year for the company in North Dakota, as
this fall it broke ground on a 106-megawatt wind project located
northeast of Glen Ullin, North Dakota. ALLETE Clean Energy will build,
own and operate the facility that will supply electricity to Xcel Energy
under a 20-year power purchase agreement.
Under development since 2011, the Glen Ullin project has been permitted
by the North Dakota Public Service Commission and will consist of 43
2.3- and 2.5-megawatt General Electric wind turbines.
At three of its operating Midwest wind sites, ALLETE Clean Energy is in
the midst of refurbishing up to 385 wind turbines to improve
availability, efficiency and preserve these pioneering wind projects to
create financial value for the company and community while supporting
the renewal of power sales agreements at the Storm Lake site in Iowa.
ALLETE Clean Energy owns and operates 535 megawatts of wind generation
at facilities in Minnesota, Iowa, Oregon and Pennsylvania and will add
projects in North Dakota and Montana in 2019, growing its operating
portfolio to over 720 MW.
ALLETE Clean Energy was established in 2011 to acquire and develop
capital projects to create energy solutions by way of wind, solar,
biomass, hydro, natural gas, shale resources, clean coal technology and
other emerging technologies.
ALLETE Inc. is an energy company headquartered in Duluth, Minnesota. In
addition to its electric utilities, Minnesota Power and Superior Water,
Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in
Duluth; BNI Energy in Bismarck, North Dakota; U.S. Water Services in St.
Michael, Minnesota; and has an 8 percent equity interest in the American
Transmission Co. More information about ALLETE is available at www.allete.com.
ALE-CORP
The statements contained in this release and statements that ALLETE
may make orally in connection with this release that are not historical
facts, are forward-looking statements. These forward-looking statements
involve risks and uncertainties and investors are directed to the risks
discussed in documents filed by ALLETE with the Securities and Exchange
Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181031005843/en/
Source: ALLETE
ALLETE
Amy Rutledge, 218-723-7400
Manager - Corporate
Communications
arutledge@allete.com