ALLETE Clean Energy’s Diamond Spring wind project will provide renewable energy to large corporate customers including Smithfield Foods and Walmart
ALLETE Clean Energy (ACE) has reach a power sales agreement with Smithfield Foods, Inc. for the remaining output of the Diamond Spring wind site it will build, own and operate in Oklahoma.
It was earlier announced that 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 from the ALLETE Inc. subsidiary
“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,” ACE President Allan S. Rudeck Jr. said in a news release. “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 ACE’s largest wind site when operations begin in 2020.
ACE 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 percent interest in the Diamond Spring wind site from the project’s developer, Apex Clean Energy. Corporate and industrial customers represent a growing market for independent power producers as companies work to meet sustainability goals.
Smithfield, a $15 billion global food company and the world’s largest hog producer and pork processor, announced a goal in 2016 to reduce greenhouse gas (GHG) emissions 25 percent by 2025. To that end, the company created Smithfield Renewables, a platform that unifies and accelerates the company’s carbon reduction and renewable energy efforts.
Walmart has committed to cover 50 percent of its energy needs with renewable sources by 2025 as it works toward an ultimate goal of operating with 100 percent renewable energy.
“When Diamond Spring comes online in 2020, it will serve three new corporate customers and deliver meaningful earnings growth for ALLETE shareholders,” said ALLETE Chairman and CEO Alan R. Hodnik. “ALLETE Clean Energy continues to help achieve ALLETE’s shared purpose to answer the call to transform the nation’s energy landscape.”