ALLETE subsidiaries secure nearly $350M tax equity funding for two wind facilities

ALLETE Clean Energy and ALLETE South Wind, both subsidiaries of ALLETE, have accrued nearly $350 million in tax equity financing for wind facilities in Oklahoma and Minnesota.

“The successful closing on tax equity financing for these two wind sites signifies investors’ confidence in ALLETE’s sustainability in action strategy,” ALLETE CFO Robert Adams said. “That strategy is guiding us to a sustainable future as we answer the call to transform the nation’s energy landscape. We see strong growth in the renewable energy sector, and we intend to capitalize on our expertise and reputation as one of the nation’s leaders in renewable energy investment to continue to develop clean-energy solutions for our customers.”

ALLETE Clean Energy sold Class A passive membership interests in Diamond Spring, LLC last month to FNBC Leasing Corp for its tax equity financing. ALLETE Clean Energy, which acquires, develops, and operates clean and renewable energy projects, will support the 303 MW Diamond Spring wind site. The site achieved commercial operation in December 2020 and now sells renewable energy to Walmart, Smithfield Foods, and Starbucks.

Separately, ALLETE South Wind secured financing from Bank of America to support the Nobles 2 facility, a 250 MW wind site in southwestern Minnesota. While Nobles 2 Power Partners LLC owns the project, ALLETE South Wind is a key investor, holding 49 percent equity interest in the facility. The site began providing energy to Minnesota Power customers through a 20-year power purchase agreement once online last month.