ALLETE Clean Energy, a subsidiary of ALLETE Inc. (NYSE: ALE), said April 16 that it has acquired from a subsidiary of EDF Renewable Energy a combined 97.5-MW of wind generation facility located near Lake Benton, Minn., for $47.5 million.
Located in southwest Minnesota in the proximity of other ALLETE Clean Energy-owned wind turbines, the Chanarambie and Viking wind farms being purchased consist of a total of 65 General Electric turbines producing electricity under existing power purchase agreements with Northern States Power, which is a subsidiary of Xcel Energy (NYSE: XEL).
“Acquiring these productive renewable projects is consistent with our growth strategy,” said ALLETE Clean Energy President Eric Norberg. “This acquisition makes good sense from an efficiency standpoint due to their proximity to the Lake Benton project we acquired a year ago.”
In other moves by the company:
- In January 2014, ALLETE Clean Energy closed on the purchase of three wind farms from AES Corp. (NYSE: AES) in three different states. Included in that acquisition was a 104-MW wind farm in Lake Benton, approximately 20 miles from the Chanarambie-Viking facilities. At the same time, ALLETE Clean Energy signed an option to acquire a fourth wind farm from AES, located in Pennsylvania, in mid 2015. That option is on the 101-MW Armenia Mountain facility.
- In November 2014, ALLETE Clean Energy finalized a major development agreement with Montana-Dakota Utilities, a division of MDU Resources Group (NYSE: MDU), acquiring the rights to develop a 107-MW wind farm near Hettinger, N.D., and then sell the project to Montana-Dakota for approximately $200 million.
- In December 2014, ALLETE Clean Energy finalized the acquisition of a wind facility in Storm Lake, Iowa, adding another 108 MW to its growing renewable energy portfolio.
“ALLETE Clean Energy is earning a name for itself by adding to its portfolio of assets, renewable generation equipment and solid power purchase agreements with established entities,” said ALLETE Chairman, President and CEO Al Hodnik. “We envision more growth opportunities ahead as the energy landscape evolves.”
EDF Renewable Energy is a leading U.S. independent power producer with more than 25 years of expertise in project development and operations and maintenance services. EDF Renewable Energy is the U.S. subsidiary of EDF Energies Nouvelles, a French renewable energy group.
ALLETE Clean Energy was established in 2011 to acquire or develop capital projects to create energy solutions by way of wind, solar, biomass, hydro, natural gas, and energy infrastructure, clean coal technology and other emerging innovations.