Greentech Lead America: Sumitomo Corp. of America (SCOA),
part of Tokyo-based Sumitomo Corp., will buy 50 percent stake in two
large-scale wind farms Duke Energy Renewables is building in Kansas.
SCOA is buying the stake in the 131 MW Cimarron II
Windpower project in Gray County and the 168 MW Ironwood Windpower project in
Duke Energy Renewables and SCOA will complete
construction of both wind farms later this year. Duke Energy Renewables will
operate and maintain Cimarron II and Ironwood once they are in service, with
SCOA actively involved in management of the projects.
“Forging this new strategic partnership with
Sumitomo – a strong global company – helps Duke Energy Renewables manage its
capital deployment effectively and fuel continued growth in its wind and solar
power businesses,” said Duke Energy Renewables President Greg Wolf.
“This joint venture marks another step in the
evolution of Sumitomo’s renewable energy business strategy, as we take a more
active role in wind and other renewable projects. We will continue to look for
opportunities where we can leverage our experience as a leading developer and a
long-term strategic investor in high-quality renewable energy projects in the
advanced development phase,” said Masao Miyamoto, vice president and head
of SCOA’s Power and Telecom Business.
The deal between Duke Energy Renewables and SCOA 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
Duke Energy Renewables’ portfolio of commercial renewable
assets includes 10 wind farms and 11 solar farms in operation in eight states,
totaling more than 1,000 megawatts in electric-generating capacity. Duke Energy
Renewables will complete five additional wind farms in 2012.