Italian firm Building Energy's US subsidiary has signed two agreements with Capital One Bank to build and operate the first distributed generation windfarm in Iowa.

With a total equity investment of about $56m, the partnership and capital contribution agreements will mean an installed wind generation capacity addition of up to 30MW. The current project is supported by a long-term power purchase agreement (PPA).

Of the total $56m equity partnership investment, Capital One Bank will invest nearly $33m while Building Energy Wind Iowa will invest around $23m.

Capital One Bank's alternative energy and project finance managing director and head George Revock said: "We are pleased to work with Building Energy, a global leader in the renewable energy market.

"Building Energy's windfarms will be able to produce 110,000 MWh every year."

"This investment will help Building Energy provide affordable and sustainable energy to local communities across Iowa, as well as advancing Capital One's sustainable energy initiative."

The bank will release funds at the commercial operation date, which is expected to be in Q4 of this year and will be subject to requirements included in the capital contribution agreement.

Executed under a strategic development agreement, the Iowa Wind Distributed Generation project is the first ever developed by Building Energy and local developer Optimum Renewables.

The project features ten onshore turbines, each equipped with a rotor diameter of 125m and a 3.0MW generator deployed on top of an 87.5m steel tower.

Building Energy's windfarms will be able to produce 110,000 MWh every year, which can sufficiently power 11,000 US households and reduce about 100,000t of CO2 emissions.

The project will be developed in four different counties with an aim to deliver renewable energy to several local communities and to keep electricity rates stable and affordable.