MDU Resources Group division Montana-Dakota Utilities (MDU) has signed a 25-year agreement with ALLETE Clean Energy (ACE) subsidiary to purchase power from the Thunder Spirit Windfarm expansion in southwest North Dakota, US.
Under the agreement, MDU is entitled to buy the project after construction nears completion.
MDU's president and chief executive officer (CEO) Nicole Kivisto said: “Our relationship with ACE on the first phase of Thunder Spirit Wind proved to be a winning formula.
“We are in need of additional energy to meet our growing demands, and with the easements, interconnection to the grid, and permits already in place from the first phase of Thunder Spirit Wind, it makes this a great project for Montana-Dakota.”
The expansion of the Thunder Spirit Wind project is expected to increase the combined production of renewable energy to about 150MW and will boost MDU’s generation portfolio from approximately 20% renewables to 25%.
The 107.5MW Thunder Spirit Wind project was originally constructed by ACE and later acquired by MDU in December 2015.
An estimated construction cost of the project is $85m and it is expected to go online in December 2018.