Sumitomo Acquires 50% Stake In Two Kansas Wind Projects

Posted by NAW Staff on March 28, 2012 No Comments
Categories : Projects & Contracts

Sumitomo Corp. of America (SCOA), part of Tokyo-based Sumitomo Corp., will become a 50-50 equity partner in two large-scale wind farms that Duke Energy Renewables is building in Kansas.

SCOA is buying a 50% stake in the 131 MW Cimarron II Windpower Project, located in Gray County, and the 168 MW Ironwood Windpower Project, located in Ford County.

Duke Energy Renewables, a commercial business unit of Duke Energy, and SCOA will complete the construction of both wind farms later this year. Duke will operate and maintain Cimarron II and Ironwood once they are in service, with SCOA actively involved in the management of the projects.

The deal is expected to close in April. In addition, the companies are exploring opportunities to finance the cost of constructing and operating the Cimarron II and Ironwood wind projects.

Both projects have long-term contracts in place to sell the electricity they generate. Kansas City Power & Light will purchase all of the electricity and associated renewable energy credits (RECs) produced by Cimarron II under the terms of a 20-year agreement. Westar Energy will buy all the power and RECs produced by the Ironwood wind farm through a 20-year agreement.

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