The 240-mile line is expected to enable delivery of hydroelectric energy from Manitoba Hydro to the US, from two new generating stations under development in northern Manitoba that will be capable of producing over 2,000MW of renewable electricity.

The transmission line will facilitate the supply of upto 750MW of energy into the US, with Minnesota Power set to deliver 250MW from Manitoba Hydro from June 2020, as part of a power purchase agreement approved by the MPUC in early 2012.

Minnesota Power chief operating officer Brad Oachs said, ”The Great Northern Transmission Line unlocks a powerful synergy between wind resources in the north central U.S. and flexible Canadian hydropower in northern Manitoba.”

Allete president, chairman and CEO Alan Hodnik said, ”Not only will this initiative advance the nation’s goal to transform the energy landscape to a less carbon intense platform, it will also open the door to further transmission investment in the Midwest, while supporting planned industrial growth on Minnesota’s Iron Range.”

The construction of the project, including substation work, is expected to cost $400m to $600m, depending upon final route.

Subject to receipt of permits, including a presidential permit from the US Department of Energy (DOE), the construction is expected to commence in June 2016 and will run for 48 months.

Minnesota Power will own 51% of the Great Northern transmission line, while the remaining 49% will be held by a subsidiary of Manitoba Hydro.