Allete Clean Energy is expected to start construction on the wind project in late 2019 or early 2020
Allete Clean Energy, a wholly owned subsidiary of ALLETE, has signed a power sales agreement with Smithfield Foods for the remaining output of the Diamond Spring wind site planned to be built in Oklahoma.
The agreement with Smithfield follows the power sale agreements with two large companies announced earlier, Walmart and Starbucks.
Allete said that Walmart has agreed to purchase 175MW for 15 years, and Smithfield has agreed to buy 75MW for 12 years, and Starbucks would purchase 50MW for 15 years
Allete Clean Energy is expected to start construction on the wind project in late 2019 or early 2020.
Contracted with the Smithfield agreement, Allete’s 300MW Diamond Spring site marks the first project to sell wind power to corporate customers.
ALLETE Clean Energy President Allan S. Rudeck Jr said: “ALLETE Clean Energy is proud to help these leading companies meet their greenhouse gas reduction and renewable energy goals through the carbon-free energy that will be generated at Diamond Spring.
“In addition to adding renewable energy to meet sustainability goals, these companies also seek to lower their energy costs. Our team delivers both, with a reputation for timely, responsible and cost-effective project execution. Directly serving the corporate and industrial power market is opening new growth opportunities for ALLETE Clean Energy.”
Diamond Spring to start operations in 2020
Operations at Allete’s largest wind site, Diamond Spring are expected start in 2020, to produce adequate power for 114,000homes.
Allete said that it has purchased a 100% interest in the Diamond Spring wind site from the project’s developer, Apex Clean Energy, which included negotiated power sales agreements with Walmart, Starbucks and Smithfield.
Smithfield senior director affairs Kraig Westerbeek said: “This partnership to source renewable energy is part of our multifaceted and comprehensive approach to reduce our carbon footprint.
“The carbon-free energy generated through the Diamond Spring project is projected to account for more than 15 percent of our total energy usage across the United States, allowing us to power a substantial portion of our operations using sustainable energy.”