ALLETE sells portion of its stake in Nemadji Trail Energy Center project
ALLETE, a Minnesota-based energy company, is selling a portion of its ownership stake in the planned Nemadji Trail Energy Center (NTEC) to Basin Electric Power Cooperative for approximately $20 million.
NTEC will be a natural gas power plant built in Superior, Wisc., capable of generating approximately 600 megawatts.
North Dakota-based Basin Electric will become a 30 percent owner in the facility through its subsidiary Nemadji River Generation. ALLETE will hold on to a 20 percent ownership stake in the NTEC project through its subsidiary South Shore Energy with an expected total investment by ALLETE of $140 million. The largest owner is Dairyland Power Cooperative, which has a 50 percent ownership stake in the planned facility.
“We are pleased to welcome another strong partner to the project in Basin Electric, affirming the important role this facility will play in ensuring regional reliability while bridging the transition to a clean-energy future as more renewable energy resources are added to the region’s energy supply,” ALLETE Chair, President and CEO Bethany Owen said. “NTEC remains an important part of our sustainability in action strategy to reduce carbon while ensuring our customers receive reliable, safe and affordable energy.”
With the sale, ALLETE’s utility division, Minnesota Power, expects to contract for a lower amount of NTEC’s energy. As part of its EnergyForward strategy to transition away from coal fired generation, the company will pursue investment in additional clean-energy technology.
“Natural gas remains an important part of Minnesota Power’s EnergyForward strategy to achieve coal-free generation by 2035 and reach a 100 percent carbon-free electricity supply by 2050,” Minnesota Power Chief Operating Officer Josh Skelton said. “Renewable sources such as wind and solar are not able to fulfill all of our customers’ energy needs on demand around the clock. We need reliable, modern energy sources such as NTEC to provide sustainable energy for our region and economy.”
Minnesota Power will continue to serve as constructor and operator of the plant. ALLETE is working with its two partners to secure the necessary permits to begin construction.
“Investing in renewable-enabling infrastructure such as NTEC, emerging clean energy technology, and transmission capacity that supports the transition to a carbon-free energy future is all part of ALLETE’s strategy,” Owen said. “The plant also represents significant economic benefits for the region in the form of construction jobs, permanent operations jobs and long-term tax base.”
