November 2 (Renewables Now) - Allete Clean Energy on Wednesday announced it has closed the sale of the 48-MW second phase of the Thunder Spirit wind farm in North Dakota to Montana-Dakota Utilities (MDU).
The Allete Inc (NYSE:ALE) subsidiary has unloaded the project for USD 84 million (EUR 73.5m). The deal came after MDU, which has agreed to buy the wind farm’s output, exercised its option to acquire the expansion when it is complete. MDU, part of MDU Resources Group (NYSE:MDU), already owns and operates the 107.5-MW first phase of Thunder Spirit. It bought the 43-turbine plant from Allete after its completion in 2015.
The second phase of the 155-MW Thunder Spirit complex near Hettinger has been qualified for federal renewable energy production tax credits. The facility uses 16 Nordex turbines of 3 MW each, which are expected to generate enough power for about 15,000 homes per year. MDU will buy its output under a 25-year power purchase agreement (PPA).
Allete Clean Energy said it is meanwhile working on the completion of a 106-MW wind project near Glen Ullin in North Dakota, the construction of which was initiated this autumn. The plant will supply power to utility Xcel Energy (NASDAQ:XEL).
Overall, Allete Clean Energy owns and operates 535 MW of wind turbine capacity in Minnesota, Iowa, Oregon and Pennsylvania. Following the commissioning of projects in North Dakota and Montana next year, its operational portfolio will exceed 720 MW.
(USD 1.0 = EUR 0.875)