DULUTH, Minn.--(BUSINESS WIRE)--Jun. 14, 2019--
ALLETE Clean Energy, a wholly owned subsidiary of ALLETE (NYSE: ALE),
announced today a power sales agreement with Smithfield
Foods, Inc. for the remaining output of the Diamond Spring wind site
ALLETE Clean Energy will build, own and operate in Oklahoma.
The Smithfield agreement follows an earlier announcement of power sale
agreements with two large Fortune 500 companies, Walmart and Starbucks.
Walmart has agreed to purchase 175 megawatts for 15 years, Smithfield
will purchase 75 megawatts for 12 years, and Starbucks will purchase 50
megawatts for 15 years. The approximately 300-megawatt Diamond Spring
site, which is ALLETE Clean Energy’s first project to sell wind power to
corporate customers, is now fully contracted with the Smithfield
“ALLETE Clean Energy is proud to help these leading companies meet their
greenhouse gas reduction and renewable energy goals through the
carbon-free energy that will be generated at Diamond Spring,” said
ALLETE Clean Energy President Allan S. Rudeck Jr. “In addition to adding
renewable energy to meet sustainability goals, these companies also seek
to lower their energy costs. Our team delivers both, with a reputation
for timely, responsible and cost-effective project execution. Directly
serving the corporate and industrial power market is opening new growth
opportunities for ALLETE Clean Energy.”
Diamond Spring will be ALLETE Clean Energy’s largest wind site when
operations begin in 2020. ALLETE Clean Energy will begin construction
late this year or in early 2020. Diamond Spring will produce enough
power for 114,000 homes, and increase the company’s total wind capacity
to more than 1,000 megawatts at nine sites in seven states.
ALLETE Clean Energy purchased a 100 percent interest in the Diamond
Spring wind site from the project’s developer, Apex Clean Energy. The
purchase included negotiated power sales agreements with Walmart,
Starbucks and Smithfield.
Corporate and industrial customers represent a growing market for
independent power producers as companies embrace sustainability goals.
Smithfield, a $15 billion global food company and the world’s largest
hog producer and pork processor, announced a goal in 2016 to reduce
greenhouse gas (GHG) emissions 25 percent by 2025. To help reach that
goal, the company created Smithfield
Renewables, a platform that unifies and accelerates the company’s
carbon reduction and renewable energy efforts.
“This partnership to source renewable energy is part of our multifaceted
and comprehensive approach to reduce our carbon footprint,” said Kraig
Westerbeek, senior director of Smithfield Renewables and hog production
environmental affairs at Smithfield. “The carbon-free energy generated
through the Diamond Spring project is projected to account for more than
15 percent of our total energy usage across the United States, allowing
us to power a substantial portion of our operations using sustainable
Walmart has committed to cover 50 percent of its energy needs with
renewable sources by 2025 as it works toward an ultimate goal of
operating with 100 percent renewable energy.
“Walmart aspires to be supplied by 100 percent renewable energy, and
sourcing from wind energy projects — like the Diamond Spring wind
facility — is a core component in the mix,” said Mark Vanderhelm, Vice
President of Energy for Walmart Inc. “The energy we'll procure from this
facility represents an important leap forward on our renewable energy
journey and reinforces Walmart’s broader mission to spark collective
action — alongside key partners — to drive environmental sustainability.”
“When Diamond Spring comes online in 2020, it will serve three new
corporate customers and deliver meaningful earnings growth for ALLETE
shareholders,” said ALLETE Chairman and CEO Alan R. Hodnik. “ALLETE
Clean Energy continues to help achieve ALLETE’s shared purpose to answer
the call to transform the nation’s energy landscape.”
ALLETE Clean Energy’s strategic purchase of wind turbines that qualify
for the safe harbor provision of federal production tax credits enables
Diamond Spring’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.
ALLETE Clean Energy acquires, develops and operates clean and renewable
energy projects. ALLETE Clean Energy currently owns and operates, in
four states, approximately 555 megawatts of nameplate capacity wind
energy generation that is contracted under PSAs of various durations.
The company has another 489 megawatts of new wind projects under
construction in three 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/20190614005068/en/
Source: ALLETE Inc.
Manager - Corporate Communications