Tenaska secures $158m financing for Nobles 2 windfarm in Minnesota

7 November 2019 (Last Updated June 18th, 2020 17:21)

US-based independent energy company Tenaska has secured $158m in commercial financing for the 250MW Nobles 2 wind farm in southwest Minnesota.

Tenaska secures $158m financing for Nobles 2 windfarm in Minnesota
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US-based independent energy company Tenaska has secured $158m in commercial financing for the 250MW Nobles 2 windfarm in southwest Minnesota.

Groups such as Associated Bank, BNP Paribas and Credit Agricole have agreed to finance the project.

Tenaska finance senior vice-president Jay Frisbie said: “This is Tenaska’s second wind financing in 2019 that has been well received by the lending community.

“This project is well-positioned to meet the needs of our customer when it comes online in 2020 and for many, many years into the future.”

The windfarm is currently under construction and owned by Nobles 2 Power Partners, which consists of affiliates of Tenaska and ALLETE, a Minnesota-based energy company.

ALLETE owns two electric utilities, including Minnesota Power and Superior Water, and it also holds an 8% equity interest in the American Transmission Company.

Construction works at the Nobles 2 windfarm began in August. It will be equipped with 74 wind turbines that will be supplied and maintained by the Danish firm Vestas.

The windfarm is being built by the Minneapolis-based energy and engineering services provider Mortenson on engineering, procurement and construction (EPC) basis. It is expected to be completed in 2020.

During the peak construction phase, Nobles 2 is expected to create up to 230 jobs and up to 15 full-time jobs once operational.

Upon completion, it will supply clean energy to Minnesota Power, a utility division of ALLETE under a 20-year power purchase agreement (PPA).

This is not the first financing Tenaska has received this year. In April, it obtained $302m to support the Clear Creek Energy Centre, which is being built in Nodaway County in Missouri.

Vestas is also providing wind turbines and maintenance services for the project, which will have a capacity of 242MW when completed.