ALLETE Clean Energy announces renewable energy sale agreements with two more Fortune 500 companies for Caddo wind site in Oklahoma

Rhea-AI Summary

ALLETE Clean Energy, a subsidiary of ALLETE (NYSE: ALE), announced renewable energy sale agreements with Oshkosh Corporation and Hormel Foods for 100 megawatts from its Caddo wind site in Oklahoma. The 303-megawatt site will double ALLETE Clean Energy's capacity amid growing corporate demand for clean energy. The project will boost local economies through $50 million in tax revenue and create around 200 construction jobs, with 12 to 15 long-term operations jobs. The site is projected to be operational by the end of 2021 and will include approximately 110 turbines, powering around 110,000 homes.

Positive

• Caddo wind site will double ALLETE Clean Energy's capacity.
• Agreements with investment-grade Fortune 500 customers, Oshkosh and Hormel.
• $50 million in tax revenue and 200 construction jobs created.
• Expected operational by end of 2021 and supports corporate sustainability goals.

Negative

• None.

ALLETE Clean Energy, a wholly owned subsidiary of ALLETE, Inc. (NYSE: ALE), announced today renewable energy sale agreements with the Oshkosh Corporation and Hormel Foods for a combined 100 megawatts from its Caddo wind site under construction in Oklahoma.

The 303-megawatt Caddo site, with renewable energy sale agreements with three 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 proud to work with two leading Upper Midwest corporations to help them achieve their sustainability goals with Caddo’s renewable energy,” said ALLETE Clean Energy President Allan S. Rudeck Jr. “Projects like Caddo help diversify and decarbonize the nation’s energy supply while strengthening local economies. We are grateful for our partnerships with landowners, communities and lawmakers, who have together created a business environment in Oklahoma that encourages and enables 21st century energy infrastructure investment.”

The project has the support of local communities, where benefits include more than $50 million in tax revenue, $54 million in payments to landowners, and the creation of about 200 jobs during construction and 12 to 15 long-term operations jobs.

Global innovator Oshkosh Corporation has been named one of FORTUNE’s World’s Most Admired Companies, one of America’s Most Responsible Companies by Newsweek, one of the Top 100 Most Sustainable Companies by Barron’s and is listed on the Dow Jones Sustainability Index. Oshkosh Corporation’s sustainability efforts are focused into four core areas including empowering people, building communities, innovation and creating a sustainable future. Specifically around waste and emission reduction, Oshkosh has a goal of a 25% reduction in normalized greenhouse gas emissions at its facilities by 2024 when compared with 2014.

“At Oshkosh Corporation, we are committed to sustainable operations, caring for our communities and practicing strong corporate governance,” said Kevin Tubbs, Oshkosh Corporation vice president and chief ethics, compliance and sustainability officer. “Involvement in projects such as the Caddo wind site is one of many ways that we continue to further our sustainability goals.”

Hormel Foods, named one of America’s Most Responsible Companies by Newsweek and one of the 100 Best Corporate Citizens by 3BL Media, recently announced its goal to match 100% of its energy with renewable sourcing by 2030. The Caddo wind site will help the company achieve around 50% of its goal when the project is completed.

“This project is a great addition to our clean energy portfolio,” said Tom Raymond, director of environmental sustainability for Hormel Foods. “Using renewable sources like wind not only helps the environment, but it makes long-term financial sense, supports local communities and demonstrates that we are committed to being good stewards to the planet.”

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.

“ALLETE’s strategy of sustainability in action is powered by clean energy projects such as Caddo,” said ALLETE President and Chief Executive Officer Bethany Owen. “ALLETE Clean Energy is increasingly seen as a trusted partner as it brings more renewable energy online to help corporations meet their commitments to sustainability.”

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% 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.

ABOUT HORMEL FOODS — Inspired People. Inspired Food.™

Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenue across more than 80 countries worldwide. Its brands include SKIPPY^®, SPAM^®, Hormel^® Natural Choice^®, Applegate^®, Justin’s^®, Wholly^®, Hormel^® Black Label^®, Columbus^® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the “Global 2000 World’s Best Employers” list by Forbes magazine for three straight years, is one of Fortune magazine’s most admired companies, has appeared on Corporate Responsibility Magazine’s “The 100 Best Corporate Citizens” list for the 12th year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.™ — to bring some of the world’s most trusted and iconic brands to tables across the globe. For more information, visit www.hormelfoods.com and http://csr.hormelfoods.com/.

ABOUT OSHKOSH CORPORATION

At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs more than 14,000 team members worldwide, all united behind a common cause: to make a difference in people’s lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Pierce®, Oshkosh® Defense, McNeilus®, IMT®, Jerr-Dan®, Frontline™, Oshkosh® Airport Products and London™. For more information, visit oshkoshcorp.com.

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FAQ

What are the details of ALLETE Clean Energy's renewable energy agreements?

ALLETE Clean Energy has signed agreements for 100 megawatts with Oshkosh Corporation and Hormel Foods for the Caddo wind site in Oklahoma.

How will the Caddo wind site impact local economies?

The Caddo project is expected to generate over $50 million in tax revenue and create approximately 200 construction jobs.

When is the Caddo wind site expected to be operational?

The Caddo wind site is projected to be operational by the end of 2021.

What is the capacity of the Caddo wind site?

The Caddo wind site has a total capacity of 303 megawatts, which will significantly increase ALLETE Clean Energy's output.

What sustainability goals will the Caddo project help Oshkosh and Hormel achieve?

Oshkosh aims for a 25% reduction in greenhouse gas emissions by 2024, while Hormel intends to match 100% of its energy with renewable sources by 2030, with Caddo supplying around 50% of this goal.