ALLETE Announces Third Partner in Nemadji Trail Energy Center Project
September 28 2021 - 6:30AM
Business Wire
Basin Electric joins Dairyland Power and ALLETE
as an investor and owner of the planned Superior, WI plant
ALLETE, Inc. (NYSE:ALE) - announced today it is selling a
portion of its ownership stake in the planned Nemadji Trail Energy
Center (NTEC) to North Dakota-based Basin Electric Power
Cooperative for approximately $20 million.
Basin Electric will become a 30 percent owner in the facility
through its wholly owned subsidiary Nemadji River Generation LLC.
ALLETE will retain a 20 percent ownership stake in the NTEC project
through its subsidiary South Shore Energy LLC, with an expected
total investment by ALLETE of approximately $140 million. Dairyland
Power Cooperative will remain a 50 percent owner of the planned
facility.
NTEC is a proposed combined-cycle, state-of-the-art natural gas
power plant to be built in Superior, Wisconsin, and will be capable
of delivering approximately 600 megawatts. The sale to Basin
Electric does not change the size of the NTEC project or its
anticipated economic impact as the single-largest private
investment in Douglas County history.
“We are pleased to welcome another strong partner to the project
in Basin Electric, affirming the important role this facility will
play in ensuring regional reliability while bridging the transition
to a clean-energy future as more renewable energy resources are
added to the region’s energy supply,” said ALLETE Chair, President
and CEO Bethany Owen. “NTEC remains an important part of our
sustainability in action strategy to reduce carbon while ensuring
our customers receive reliable, safe and affordable energy.”
With Basin Electric joining the project, ALLETE’s utility
division Minnesota Power expects to contract for a lower amount of
NTEC’s energy and, as part of its EnergyForward strategy to
transition away from coal fired generation, will pursue investment
in additional clean-energy technology. Minnesota Power will
continue as constructor and operator of the plant. Dairyland Power
and Basin Electric will utilize the remaining capacity of NTEC’s
generation to serve their cooperative members.
“Natural gas remains an important part of Minnesota Power’s
EnergyForward strategy to achieve coal-free generation by 2035 and
reach a 100 percent carbon-free electricity supply by 2050,” said
Minnesota Power Chief Operating Officer Josh Skelton. “Renewable
sources such as wind and solar are not able to fulfill all of our
customers’ energy needs on demand around the clock. We need
reliable, modern energy sources such as NTEC to provide sustainable
energy for our region and economy.”
The Minnesota Public Utilities Commission approved NTEC and the
affiliated interest agreements between Minnesota Power and South
Shore Energy in October 2018. The Public Service Commission of
Wisconsin approved NTEC in January 2020 after a review that
included a full Environmental Impact Statement. ALLETE is working
with its two partners to secure the necessary permits to begin
construction.
“Investing in renewable-enabling infrastructure such as NTEC,
emerging clean energy technology, and transmission capacity that
supports the transition to a carbon-free energy future is all part
of ALLETE’s strategy,” Owen said. “The plant also represents
significant economic benefits for the region in the form of
construction jobs, permanent operations jobs and long-term tax
base. “
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, N.D.;
and has an eight 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. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210928005208/en/
Investor Contact: Vince Meyer 218-723-3952 vmeyer@allete.com
Media Contact: Amy Rutledge arutledge@mnpower.com
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