ALLETE Clean Energy Plans Expansion of North Dakota Wind Farm
January 03 2017 - 6:30AM
Business Wire
25-year power purchase agreement with Montana-Dakota Utilities
includes sale option
ALLETE Clean Energy, a wholly-owned subsidiary of ALLETE, Inc.
(NYSE: ALE), today announced its plan to work with Montana-Dakota
Utilities (MDU) to expand the Thunder Spirit wind farm in North
Dakota, reaching the 150-megawatt permitted capacity of the
facility ALLETE Clean Energy developed in 2014 and 2015.
ALLETE Clean Energy secured a 25-year power purchase agreement
with MDU to purchase energy from the expansion near Hettinger,
North Dakota, about 100 miles southwest of Bismarck. Under the
agreement, MDU, a division of MDU Resources Group (NYSE: MDU) also
has the option to purchase the expansion when it is complete as it
did with the first phase of Thunder Spirit.
In 2014, ALLETE Clean Energy acquired the rights to build the
107.5-megawatt first phase of Thunder Spirit, which comprises 43
turbines and generates enough electricity to power about 30,000
homes. After the project was completed in 2015, MDU bought Thunder
Spirit from ALLETE Clean Energy for $200 million and operates the
wind farm for its customers.
MDU granted ALLETE Clean Energy the right to develop the 13- to
16-turbine Thunder Spirit expansion, with major construction on the
$85 million project expected to start in May 2018. ALLETE Clean
Energy has qualified the Thunder Spirit expansion site for federal
renewable energy production tax credits.
“We are pleased MDU has selected us to expand the Thunder Spirit
Wind project and look forward to partnering with them, area
landowners and Adams County officials as well as North Dakota
regulators on this exciting project that will deliver additional
carbon-free energy to serve its customers,” said Allan S. Rudeck
Jr., President of ALLETE Clean Energy. “This transaction
strengthens ALLETE Clean Energy's renewable energy repertoire and
is consistent with ACE's multipronged growth strategy to expand its
clean energy project portfolio by pursuing acquisitions and new
builds with long-term power sales agreements, build-transfers and
renewal investments of existing facilities.”
The Thunder Spirit expansion helps MDU meet its energy
needs.
“Our relationship with ALLETE Clean Energy on the first phase of
Thunder Spirit Wind proved to be a winning formula,” said MDU
President and CEO Nicole Kivisto. “We are in need of additional
energy to meet our growing demands, and with the easements,
interconnection to the grid and permits already in place from the
first phase of Thunder Spirit Wind, it makes this a great project
for Montana-Dakota.”
In addition to developing this expansion for MDU, ALLETE Clean
Energy owns and operates wind generation facilities in Minnesota,
Iowa, Oregon and Pennsylvania. 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 Center, North
Dakota; U.S. Water Services in St. Michael, Minnesota; and has an
eight 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. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170103005145/en/
ALLETE Inc.Amy Rutledge, 218-723-7400Manager - Corporate
Communicationsarutledge@allete.com
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