NJR Clean Energy Ventures (NJRCEV), the unregulated clean energy subsidiary of New Jersey Resources, has announced the acquisition of its first wind project.
Named for the Montana town it is adjacent to, the Two Dot wind farm will be located on 176 acres of rural agricultural land, approximately 93 miles east of the state capital of Helena. NJRCEV will invest approximately $22 million and be responsible for constructing, owning and operating the 9.72 wind farm. The project will consist of six GE 1.62 MW wind turbines with a 87-meter rotor diameter.
"The acquisition of the Two Dot wind project is a significant milestone for NJR Clean Energy Ventures," says Laurence M. Downes, chairman and CEO of New Jersey Resources. He adds the project "represents a viable long-term growth opportunity for our company and shareowners. We believe it is a sound investment that advances the planned diversification of our clean energy portfolio."
The project was developed by OwnEnergy Inc., a developer of midsize and community wind projects. In 2012, NJRCEV acquired an approximate 19% ownership position in OwnEnergy, with an option to purchase projects that fit its investment profile. This is the first OwnEnergy project purchased by NJRCEV.
NJRCEV will engage Mortenson Construction for the engineering, procurement and construction of the project, and the wind farm is expected be operational by summer 2014.
The energy produced at Two Dot, as well as the renewable attributes, will be sold through a 25-year power purchase agreement with NorthWestern Energy, a natural gas and electricity supplier that serves over 673,000 customers in Montana, South Dakota and Nebraska. Additionally, NJRCEV expects the wind farm will qualify for federal production tax credits, all of which will be retained by New Jersey Resources.