Sumitomo Corporation of America (SCOA) will own 50% of the equity of the two wind farms to be built by Duke Energy Renewables in Kansas, US.
The firms will jointly finish constructing 131-megawatt (MW) Cimarron II Windpower Project in Gray County and the 168-MW Ironwood Windpower Project in Ford County by the year end.
Duke Energy Renewables president Greg Wolf said, "Forging this new strategic partnership with Sumitomo – a strong global company – helps help Duke Energy Renewables manage its capital deployment effectively and fuel continued growth in its wind and solar power businesses."
SCOA’s Power and Telecom Business head and vice-president Masao Miyamoto said the joint venture marks another step in the evolution of the company’s renewable energy business strategy, as the company takes a more active role in wind and other renewable projects.
"We will continue to look for opportunities where we can leverage our experience as a leading developer and a long-term strategic investor in high-quality renewable energy projects in the advanced development phase," said Miyamoto.
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By GlobalDataDuke Energy Renewables will operate and maintain the projects, while SCOA will take care of the management.
The deal between the companies is expected to be signed by the end of next month.
The companies are exploring opportunities to fund the construction and operation of the projects.
Kansas City Power & Light will buy electricity and associated renewable energy credits (RECs) generated by Cimarron II, while Westar Energy will buy all the power and RECs produced by the Ironwood wind farm.
This will be done as per the terms through a 20-year agreement.
Image: Duke Energy along with Sumitomo will finish the wind power projects in Gray County and Ford County by the year end. Photo: Justin Cozart
