ALLETE Clean Energy Announces Renewable Energy Agreement with McDonald’s for Caddo Wind Site in Oklahoma
ALLETE Clean Energy, a subsidiary of ALLETE (NYSE: ALE), has signed a renewable energy sale agreement with McDonald's Corp. (NYSE: MCD) for 200 megawatts from the Caddo wind site under construction in Oklahoma. The project, totaling 300 megawatts, will double ALLETE Clean Energy’s capacity and is expected to support over 200 construction jobs and long-term operational roles. Additionally, the project is projected to generate $50 million in tax revenue and $54 million in payments to landowners, while helping McDonald's achieve a 36% reduction in greenhouse gas emissions by 2030.
- Signed a 200 MW renewable energy agreement with McDonald's.
- Caddo wind project will double ALLETE Clean Energy’s capacity.
- $50 million in tax revenue and $54 million in landowner payments anticipated.
- Creation of approximately 200 construction jobs and 12-15 long-term operational jobs.
- None.
DULUTH, Minn.--(BUSINESS WIRE)--ALLETE Clean Energy, a wholly owned subsidiary of ALLETE, Inc. (NYSE: ALE), announced today a renewable energy sale agreement with McDonald’s Corp. (NYSE: MCD) for 200 megawatts from the Caddo wind site ALLETE Clean Energy is currently constructing in Oklahoma.
The 300-megawatt Caddo site, with its three renewable energy sale agreements with investment-grade Fortune 500 customers, will double ALLETE Clean Energy’s capacity to serve the accelerating corporate demand for clean energy. The project is in Caddo County in southern Oklahoma.
“We’re honored to help McDonald’s advance its climate action goals while developing a project that will bring sizable economic benefits to rural Oklahoma,” said ALLETE Clean Energy President Allan S. Rudeck Jr. “As corporations increasingly look to reduce carbon emissions through wind energy purchases, they also help build and strengthen local economies and diversify the nation’s power supply. Stable state and federal energy policy and local landowner and community support are foundational as we continue to deliver clean energy solutions to help customers achieve their sustainability goals.”
The project has the support of the local communities, where benefits include more than
The Caddo agreement is part of a plan by McDonald’s to use its large scale to help address climate change for current and future generations. The company, in collaboration with franchisees and suppliers, plans to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36 percent by 2030 from a 2015 base year.
“The Caddo project is an important addition to McDonald’s growing portfolio of renewable energy investments as part of our commitment to climate action,” said Emma Gillespie Cox, North American Sustainability, McDonald’s. “ALLETE Clean Energy is a valued partner whose wind energy expertise helps us expand our impact on the environment, while also ensuring the access to and economic benefits of clean energy production for communities across the United States.”
Caddo’s approximately 110 turbines will produce enough energy to power the equivalent of about 110,000 homes, and increases ALLETE Clean Energy’s total operating, under construction and build-transfer wind energy projects to more than 1,450 megawatts of nameplate capacity. The company’s recent growth has come through serving new commercial and industrial customers through the Diamond Spring and Caddo projects in Oklahoma. ALLETE Clean Energy purchased both sites from Apex Clean Energy and, as at Diamond Spring, the two companies will work together to finalize development and construction of Caddo.
“The Caddo project is a bright example of ALLETE’s strategy of sustainability in action,” said ALLETE President and Chief Executive Officer Bethany Owen. “Corporate commitment to clean energy is driving a substantial percentage of growth in the renewable energy sector, and ALLETE Clean Energy is increasingly seen as a proven, trusted partner in bringing more wind energy online.”
The Caddo site is expected to be operational by the end of 2021 and qualify for the safe harbor provision of federal renewable energy production tax credits. ALLETE Clean Energy continues to own an inventory of safe harbor turbines and is exploring additional opportunities to put more of them to use to serve customers.
ALLETE Clean Energy acquires, develops and operates clean and renewable energy projects. ALLETE Clean Energy owns, operates, has in advanced construction and has delivered build-transfer projects totaling more than 1,450 megawatts of nameplate wind capacity across seven states.
ALLETE Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth; BNI Energy in Bismarck, North Dakota; and has an 8 percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
