Sempra US Gas & Power and BP Wind Energy will jointly develop the 21MW Auwahi wind farm in southeastern Maui, Hawaii.
The project will use eight Siemens wind turbines to generate enough renewable power for around 10,000 households in the US state.
The Auwahi wind farm will also use a battery storage unit capable of storing in excess of 4MWh of electricity.
Sempra US Gas & Power vice president of renewables, Jim Sahagian, said the company is pleased to have the opportunity to further expand its strategic partnership with BP Wind Energy.
"Our companies share a commitment to building and operating the Auwahi Wind farm in a way that reflects Maui's commitment to environmental protection," said Sahagian.
"We look forward to providing a stable supply of clean power to the region and becoming a long-term partner with the local community."
Sempra US Gas & Power will continue to develop and operate the project, once construction is complete.
Maui Electric Company has signed a long-term power purchase agreement for the entire power output from the wind farm.
Initial construction activities are underway and full mobilisation at the site is scheduled to commence by the end of the second quarter 2012.
The project is expected to be in commercial operation by the end of 2012.
Auwahi is the fifth project developed under a strategic partnership between the two companies that includes more than 1,000MW of wind generating capacity in operation or under construction.
The new source of wind power is set to help Hawaii reach its clean energy goal of securing 40% of its electricity from renewable sources by 2030.
Image: The wind farm is expected to start commercial operation by year-end 2012. Photo: courtesy of dan.