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ALLETE Clean Energy to Provide Renewable Energy to Large Corporate Customers

Power News - Published on Mon, 17 Jun 2019

Image Source: Business Wire
ALLETE Clean Energy, a wholly owned subsidiary of ALLETE announced that a power sales agreement with Smithfield Foods, Inc for the remaining output of the Diamond Spring wind site ALLETE Clean Energy will build, own and operate in Oklahoma. The Smithfield agreement follows an earlier announcement of power sale agreements with two large Fortune 500 companies, Walmart and Starbucks. Walmart has agreed to purchase 175 megawatts for 15 years, Smithfield will purchase 75 megawatts for 12 years, and Starbucks will purchase 50 megawatts for 15 years. The approximately 300-megawatt Diamond Spring site, which is ALLETE Clean Energy’s first project to sell wind power to corporate customers, is now fully contracted with the Smithfield agreement.

ALLETE Clean Energy President Allan S. Rudeck Jr said that “ALLETE Clean Energy is proud to help these leading companies meet their greenhouse gas reduction and renewable energy goals through the carbon-free energy that will be generated at Diamond Spring. In addition to adding renewable energy to meet sustainability goals, these companies also seek to lower their energy costs. Our team delivers both, with a reputation for timely, responsible and cost-effective project execution. Directly serving the corporate and industrial power market is opening new growth opportunities for ALLETE Clean Energy.”

Diamond Spring will be ALLETE Clean Energy’s largest wind site when operations begin in 2020. ALLETE Clean Energy will begin construction late this year or in early 2020. Diamond Spring will produce enough power for 114,000 homes, and increase the company’s total wind capacity to more than 1,000 megawatts at nine sites in seven states.

ALLETE Clean Energy purchased a 100% interest in the Diamond Spring wind site from the project’s developer, Apex Clean Energy. The purchase included negotiated power sales agreements with Walmart, Starbucks and Smithfield.

Corporate and industrial customers represent a growing market for independent power producers as companies embrace sustainability goals.

Smithfield, a USD 15 billion global food company and the world’s largest hog producer and pork processor, announced a goal in 2016 to reduce greenhouse gas emissions 25 percent by 2025. To help reach that goal, the company created Smithfield Renewables, a platform that unifies and accelerates the company’s carbon reduction and renewable energy efforts.

Mr Kraig Westerbeek, senior director of Smithfield Renewables and hog production environmental affairs at Smithfield said that “This partnership to source renewable energy is part of our multifaceted and comprehensive approach to reduce our carbon footprint. The carbon-free energy generated through the Diamond Spring project is projected to account for more than 15 percent of our total energy usage across the United States, allowing us to power a substantial portion of our operations using sustainable energy.”

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Posted By : Ratan Singh on Mon, 17 Jun 2019
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