HOUSTON, March 14,
2024 /PRNewswire/ -- Sempra Infrastructure, a
subsidiary of Sempra (NYSE: SRE) (BMV: SRE), announced today
that it reached a positive final investment decision for the
development, construction and operation of the Cimarron wind
project, the third phase of the Energía Sierra Juarez (ESJ) wind complex.
The Cimarron wind project will total approximately 320 megawatts
(MW) of wind capacity, and the project is fully contracted under a
20-year power purchase agreement to Silicon Valley Power for the
long-term supply of renewable energy to the City of Santa Clara, California. The
project has a fixed-price turbine supply agreement with Vestas for
the supply and installation of 64 wind turbines and a similar
fixed-price agreement with Elecnor for the construction of the
balance of plant. The Cimarron project will utilize Sempra
Infrastructure's existing cross-border, high-voltage transmission
line interconnecting the ESJ wind complex directly into the
California Independent System Operator system.
Total capital expenditures for the project are estimated at
$550 million, and the project is
expected to commence generating energy in late 2025.
"We are excited to cost-effectively expand the ESJ wind complex
to support Silicon Valley Power's needs for clean renewable
energy," said Justin Bird, CEO of
Sempra Infrastructure. "Cimarron wind is expected to provide strong
financial returns and represents another important step toward our
mission of becoming North
America's leading energy infrastructure company."
Cimarron will produce energy equivalent to the annual energy
consumption of more than 84,000 homes and is expected to reduce
greenhouse gas emissions by around 210,000 metric tons of carbon
dioxide equivalent (CO2e) per year.1 The construction of
the new facility is expected to create more than 2,000 direct and
indirect jobs with additional local community investment under
Sempra Infrastructure's framework for corporate giving as part of
the company's commitment to the communities where it operates.
The first two phases of the ESJ wind complex, totaling 263 MW,
are under long-term power purchase agreements with San Diego Gas
& Electric. Once the Cimarron project is in operation, the ESJ
wind complex will have total installed capacity of more than 580 MW
and will represent one of the largest commercial wind projects in
all of Mexico.
Sempra Infrastructure has submitted an interconnection request
for an additional 300 MW of capacity at the site, which has a
potential expansion opportunity of more than 650 MW, which if
developed could result in Sempra Infrastructure owning over 1,200
MW of installed wind capacity in the Baja
California region.
The Cimarron wind project is being developed by Sempra
Infrastructure's low carbon solutions business line which is
focused on commercializing and deploying low carbon solutions in
order to meet the growing demand for cleaner energy in the form of
electrons and molecules. Sempra Infrastructure's existing portfolio
of renewable resources includes more than 1,000 MW of clean energy
infrastructure, as well as hydrogen fuel production and advanced
carbon capture, usage and storage technologies that are under
development.
About Sempra Infrastructure
Sempra Infrastructure,
headquartered in Houston, is
focused on delivering energy for a better world by developing,
building and operating low carbon solutions, energy networks, and
LNG infrastructure that are expected to play a crucial role in the
energy systems of the future. Through the combined strength of its
assets in North America, Sempra
Infrastructure is connecting customers across the globe to modern
energy infrastructure to source and transport renewables and
natural gas, while advancing carbon sequestration and clean
hydrogen. For more information about Sempra Infrastructure, please
visit www.SempraInfrastructure.com and social media.
1 Based upon "Emission Factors for
Greenhouse Gas Inventories" calculation methodology from the EPA
Center for Corporate Climate Leadership.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on assumptions about the
future, involve risks and uncertainties, and are not guarantees.
Future results may differ materially from those expressed or
implied in any forward-looking statement. These forward-looking
statements represent our estimates and assumptions only as of the
date of this press release. We assume no obligation to update or
revise any forward-looking statement as a result of new
information, future events or otherwise.
In this press release, forward-looking statements can be
identified by words such as "believe," "expect," "intend,"
"anticipate," "contemplate," "plan," "estimate," "project,"
"forecast," "envision," "should," "could," "would," "will,"
"confident," "may," "can," "potential," "possible," "proposed," "in
process," "construct," "develop," "opportunity," "preliminary,"
"initiative," "target," "outlook," "optimistic," "poised,"
"maintain," "continue," "progress," "advance," "goal," "aim,"
"commit," or similar expressions, or when we discuss our guidance,
priorities, strategy, goals, vision, mission, opportunities,
projections, intentions or expectations.
Factors, among others, that could cause actual results and
events to differ materially from those expressed or implied in any
forward-looking statement include: decisions, investigations,
inquiries, regulations, denials or revocations of permits,
consents, approvals or other authorizations, and other actions,
including the failure to honor contracts and commitments, by the
(i) U.S. Department of Energy, Comisión Reguladora de Energía, U.S.
Federal Energy Regulatory Commission, U.S. Internal Revenue Service
and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other
jurisdictions therein and in other countries where we do business;
the success of business development efforts, construction projects,
acquisitions, divestitures and other significant transactions,
including risks related to (i) being able to make a final
investment decision, (ii) completing construction projects or other
transactions on schedule and budget, (iii) realizing anticipated
benefits from any of these efforts if completed, (iv) obtaining
third-party consents and approvals, and (v) third
parties honoring their contracts and commitments; macroeconomic
trends or other factors that could change our capital expenditure
plans and their potential impact on growth; litigation,
arbitrations, property disputes and other proceedings, and changes
to laws and regulations, including those related to tax and
trade policy and the energy industry in Mexico; cybersecurity threats, including by
state and state-sponsored actors, of ransomware or other attacks on
our systems or the systems of third parties with which we conduct
business, including the energy grid or other energy infrastructure;
the availability, uses, sufficiency, and cost of capital resources
and our ability to borrow money or otherwise raise capital on
favorable terms and meet our obligations, including due to (i)
actions by credit rating agencies to downgrade our credit ratings
or place those ratings on negative outlook, (ii) instability in the
capital markets, or (iii) rising interest rates and inflation; the
impact on our ability to pass through higher costs to customers due
to volatility in inflation, interest and foreign currency exchange
rates and commodity prices; the impact of climate and
sustainability policies, laws, rules, regulations, disclosures and
trends, including actions to reduce or eliminate reliance on
natural gas, the risk of nonrecovery for stranded assets, and
uncertainty related to relevant emerging and early-stage
technologies; weather, natural disasters, pandemics, accidents,
equipment failures, explosions, terrorism, information system
outages or other events, such as work stoppages, that disrupt our
operations, damage our facilities or systems, cause the release of
harmful materials or fires or subject us to liability for damages,
fines and penalties, some of which may not be recoverable through
insurance or may impact our ability to obtain satisfactory levels
of affordable insurance; the availability of natural gas, including
disruptions caused by failures in the pipeline system or
limitations on the withdrawal of natural gas from storage
facilities; and other uncertainties, some of which are difficult to
predict and beyond our control.
These risks and uncertainties are further discussed in the
reports that Sempra has filed with the U.S. Securities and Exchange
Commission (SEC). These reports are available through the EDGAR
system free-of-charge on the SEC's website, www.sec.gov, and
on Sempra's website, www.sempra.com. Investors should not rely
unduly on any forward-looking statements.
Sempra Infrastructure and Sempra Infrastructure Partners are
not the same company as San Diego Gas & Electric Company or
Southern California Gas Company, and none of Sempra Infrastructure,
Sempra Infrastructure Partners nor any of its subsidiaries is
regulated by the California Public Utilities Commission.
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SOURCE Sempra Infrastructure