Venture includes new Oklahoma wind farm, two long-term power sales
DULUTH, Minn.--(BUSINESS WIRE)--May 3, 2019--
ALLETE Clean Energy, a wholly owned subsidiary of ALLETE (NYSE: ALE),
announced today it has acquired the Diamond Spring wind project in
Oklahoma from Apex Clean Energy and will build, own, operate and sell
wind power from the site to two large Fortune 500 companies under
15-year power sales agreements.
Diamond Spring will be the first ALLETE Clean Energy wind site to have
contracts with corporate customers. Corporate and industrial customers
represent a growing market as companies embrace sustainability goals and
demonstrate to customers they are powered by clean energy.
“ALLETE Clean Energy is honored to work with well-known and highly
respected companies to advance their sustainability goals and add
renewable energy to reduce their carbon footprints,” said ALLETE Clean
Energy President Allan S. Rudeck Jr. “In addition to renewable energy,
these customers are seeking competitive energy costs, and the ALLETEClean Energy team is pleased to deliver clean energy supplies with a
track record of timely, responsible and cost-effective project
execution. Serving the corporate and industrial market opens new
opportunities for ALLETE Clean Energy, and the southern Oklahoma
location is strategic in that it provides a new beach-head in the highly
attractive Southwest Power Pool where significant potential exists for
serving new customers in the utility and corporate and industrial
segments. We are pleased to be working with Apex Clean Energy to bring
Diamond Spring to market.”
ALLETE Clean Energy purchased a 100 percent interest in the up to 303 MW
Diamond Spring wind farm from the project’s developer, Apex Clean
Energy. The purchase includes two power sales agreements negotiated by
Apex totaling up to 228 megawatts and additional capacity to serve the
growing corporate and industrial market.
“Corporations are taking a clear leadership position in curbing carbon
emissions, and we applaud them for aggressively working to achieve their
sustainability goals,” said Mark Goodwin, president and CEO of Apex
Clean Energy. “Apex is proud to partner with ALLETE at Diamond Spring
Wind, one of several Apex projects this year that is expected to help
leaders in the corporate, commercial, and industrial sectors meet their
clean energy commitments.”
ALLETE Clean Energy will begin construction this year with the wind
project coming online in 2020. It will be the largest wind facility
owned by ALLETE Clean Energy, producing enough power for 114,000 homes,
and increase the company’s total wind capacity to approximately 1,000
megawatts at nine sites. The project has the support of the local
communities, where benefits include $48 million in tax revenue and $54
million in payments to landowners.
ALLETE Clean Energy’s purchase of wind turbines that qualify for the
safe harbor provision of federal production tax credits enable the
project’s low energy costs. In addition to turbines to be installed at
Diamond Spring, ALLETE Clean Energy retains more safe harbor turbines
for additional wind site development.
“This innovative customer renewable project demonstrates that ALLETEClean Energy continues to evolve its game and unique growth strategy,
facilitating cleaner energy while driving shareholder value,” said
ALLETE Chairman and CEO Al Hodnik. “ALLETE Clean Energy was in early on
PTC turbine acquisition and has additional safe harbor turbines in hand.
That, along with its reputation as a competent and trusted developer and
operator of wind sites, well positions ALLETE Clean Energy to
strategically capture high-value projects in the booming renewable wind
energy market. Now armed with proceeds from ALLETE’s recent sale of U.S.
Water Services to Kurita and given an expansion in state renewable
energy standards and an increase in the number of companies adopting
sustainability statements, we are excited about continued growth
prospects in the renewable energy sector.”
ALLETE Clean Energy acquires, develops and operates clean and renewable
energy projects. ALLETE Clean Energy currently owns and operates, in
four states, approximately 556 megawatts of nameplate capacity wind
energy generation that is contracted under PSAs of various durations,
and has another 186 megawatts of new wind projects under construction in
two additional states under long term PSA’s. ALLETE Clean Energy also
engages in the development of wind energy facilities to operate under
long-term PSAs or for sale to others upon completion.
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; and has an 8 percent
equity interest in the American Transmission Co. More information about
ALLETE is available at www.allete.com.
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. Actual results may differ
materially from those projected in the 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/20190503005459/en/
Source: ALLETE Inc.
Mgr. - Corporate Communications