Airtricity Inc., a global renewable energy company with U.S. offices in Chicago, has executed a multi-year hedge agreement for its 126.5 MW Champion Wind Farm with Coral Energy Holding LP, a wholly owned subsidiary of Royal Dutch Shell Plc.
The agreement provides Champion a hedge against declines in electricity prices and facilitates bank financing of the project, while allowing it to earn more if electricity prices increase. According to Airtricity, Champion Wind Farm is the first Airtricity project in North America being constructed without the use of a traditional power purchase agreement.
The wind farm represents the second phase of the larger Roscoe project complex and is situated on approximately 14,000 acres of agricultural land 40 miles west of Abilene, Texas. The project will consist of 55 Siemens 2.3 MW turbines and is scheduled for completion by early 2008, Airtricity adds.