Itochu Corporation and General Electric (GE) have completed the first transaction by making a co-investment in the estimated $319m CPV Keenan II wind farm under construction in Oklahoma, under their collaboration agreement.
GE Energy Financial Services has sold a portion of its $65m preferred equity interest in the wind farm to Tyr Keenan II, an indirect subsidiary of Itochu Corporation.
This co-investment is the first transaction under the collaboration and cooperation agreement that GE and Itochu finalized in May to identify co-investment opportunities in renewable energy worldwide.
Itochu and GE also retain the option to jointly invest an additional $100m in partnership equity upon commencement of Keenan II’s commercial operation, expected in December.
GE Energy Financial Services originally acquired Keenan II, a 152MW wind farm developed by CPV Renewable Energy Company, in February of this year.
The project will consist of 66 2.3MW wind turbines spread over 8,000 acres, and is expected to generate enough electricity to power approximately 45,000 average Oklahoma homes and displace approximately 413,000 short tons a year in greenhouse gas emissions, the equivalent of taking nearly 72,000 cars off the road.
The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Company.
Itochu said that the construction, led by Delaney Group, is on schedule.