The wind farms that secured the tax equity financing are the Diamond Spring and the Nobles 2 wind farms, which began operations in December 2020
ALLETE has secured tax equity financing totalling nearly $350m for its recently completed 303MW Diamond Spring wind farm in Oklahoma and the 250MW Nobles 2 wind farm in Minnesota.
The US-based power producer said that its fully-owned subsidiary ALLETE Clean Energy sold Class A passive membership interests in the holding company of the Diamond Spring wind farm to FNBC Leasing, which is an affiliate of JPM Capital.
Located in southern Oklahoma, Diamond Spring sells renewable energy to Walmart, Starbucks, and Smithfield Foods under renewable energy sales agreements.
The Diamond Spring wind farm entered into full commercial operation in December 2020. It is said to be the largest wind site of ALLETE Clean Energy and can generate enough energy to power nearly 114,000 homes.
ALLETE’s another subsidiary ALLETE South Wind secured tax equity financing for the Nobles 2 wind farm from Bank of America.
ALLETE South Wind is a co-investor in the wind farm’s holding company Nobles 2 Power Partners alongside Tenaska and Bright Canyon Energy. The ALLETE subsidiary has a stake of 49% in the wind farm located in southwestern Minnesota.
Powered by 74 Vestas turbines, the Nobles 2 wind farm also started commercial operations in December 2020. It has a 20-year power purchase agreement in place with Minnesota Power.
ALLETE chief financial officer Robert Adams said: “The successful closing on tax equity financing for these two wind sites signifies investors’ confidence in ALLETE’s sustainability in action strategy. That strategy is guiding us to a sustainable future as we answer the call to transform the nation’s energy landscape.
“We see strong growth in the renewable energy sector, and we intend to capitalize on our expertise and reputation as one of the nation’s leaders in renewable energy investment to continue to develop clean-energy solutions for our customers.”
In May last year, ALLETE Clean Energy secured tax equity funding to support its 80MW South Peak wind site in Montana.