ALLETE Clean Energy, a company that acquires, develops and operates renewable energy projects, says two of its wholly owned subsidiaries have secured approximately $350 million in tax equity financing to support two recently completed wind energy sites.
ALLETE Clean Energy sold Class A passive membership interests in Diamond Spring LLC to FNBC Leasing Corp., an affiliate of JPM Capital Corp. The Diamond Spring site is a 303 MW wind facility in southern Oklahoma that sells renewable energy to Walmart, Smithfield Foods and Starbucks through renewable energy sales agreements. It achieved full commercial operation last month.
ALLETE South Wind also has secured tax equity financing from Bank of America in support of Nobles 2, a 250 MW wind facility in southwestern Minnesota. The project is owned by Nobles 2 Power Partners LLC whose investors include ALLETE South Wind, Tenaska and Bright Canyon Energy. ALLETE South Wind holds a 49% equity interest in the Nobles 2 wind site through its position in Nobles 2 Power Partners LLC. The wind site delivers energy to Minnesota Power customers through a 20-year power purchase agreement and also began commercial operations early last December.
“The successful closing on tax equity financing for these two wind sites signifies investors’ confidence in ALLETE’s sustainability strategy,” says Robert Adams, CFO of ALLETE. “That strategy is guiding us to a sustainable future as we answer the call to transform the nation’s energy landscape. We see strong growth in the renewable energy sector and we intend to continue to develop clean-energy solutions for our customers. We are grateful to all of our partners and stakeholders that have enabled the development of these successful renewable projects.”
ALLETE Clean Energy owns, operates, has in advanced construction and has delivered build-transfer projects totaling more than 1,450 MW of nameplate wind capacity across seven states.