Pattern Energy Group LP has acquired the 283 MW Gulf Wind project from Babcock & Brown. Gulf Wind includes 118 wind turbines and generates 283 MW of energy.
Gulf Wind is located on the Gulf Coast, in Kenedy County, Texas, where favorable wind conditions allow the project to maximize energy production during times of peak demand and peak pricing, according to Pattern. The project is in close proximity to transmission lines that allow for the efficient delivery of power to nearby markets. The majority of Gulf Wind's output has been contracted to be sold to a credit worthy third party, with its price secured under a long-term power agreement.
‘Gulf Wind is situated in a unique coastal location where the winds blow strongest at the times of the day – as well as the seasons of the year – when electricity demand and prices are highest – translating into strong revenue and the ability to better meet demand in the markets we serve,’ says Mike Garland, CEO of Pattern.
The Gulf Wind project has been operational for approximately one year and is located on a portion of the Kenedy Ranch owned by the Kenedy Memorial Foundation near the town of Sarita, Texas. According to the terms of the transaction, Pattern will make monthly royalty payments to the Kenedy Memorial Foundation, which will allow the foundation to increase its charitable work in south Texas. The project provides millions in tax benefits to the region, including paying nearly $3.5 million in local taxes for 2010, according to Pattern.
Pattern executed financing agreements with wind project lenders, including Mizuho Corporate Bank LTD, Banco Espirito Santo SA, Bayerische Landesbank, Commerzbank AG, HSH Nordbank AG and ING Capital LLC. The acquisition concludes a nearly one-year, competitive sale process conducted by Babcock & Brown.
SOURCE: Pattern Energy Group LP