ITOCHU Corp. and GE have completed the first transaction under their collaboration agreement by making a co-investment in the estimated $319 million CPV Keenan II wind farm under construction in Oklahoma.
GE Energy Financial Services has sold a portion of its $65 million preferred equity interest in the wind farm to Tyr Keenan II LLC, an indirect subsidiary of ITOCHU. This co-investment is the first transaction under a collaboration and cooperation agreement, which 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 $100 million in partnership equity upon commencement of Keenan II's commercial operation, which is expected in December.
GE Energy Financial Services originally acquired Keenan II, a 152 MW wind farm developed by CPV Renewable Energy Co., in February. The project will consist of 66 2.3 MW wind turbines spread over 8,000 acres.
The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Co. The construction, led by Delaney Group Inc., is on schedule.
SOURCE: ITOCHU Corp.