Sumitomo Corp. of America (SCOA), part of Tokyo-based Sumitomo Corp., will become a 50-50 equity partner in two wind farms Duke Energy Renewables is building in Kansas, the companies said on March 27, 2012.
SCOA is buying a 50 percent stake in both the 131 MW Cimarron II Windpower Project and the 168 MW Ironwood Windpower Project.
Duke Energy Renewables, a unit of Duke Energy (NYSE: DUK), and SCOA will complete construction of both wind farms in 2012. Duke Energy Renewables will operate and maintain Cimarron II and Ironwood once they are in service, with SCOA actively involved in management of the projects.
The deal between Duke Energy Renewables and SCOA is expected to close in April 2012. In addition, the companies are exploring opportunities to finance the cost of constructing and operating the Cimarron II and Ironwood wind projects.
Both projects have long-term contracts in place to sell the electricity they generate. Kansas City Power and Light will purchase all of the electricity and associated renewable energy credits (RECs) produced by Cimarron II under the terms of a 20-year agreement. Westar Energy (NYSE: WR) will buy all the power and RECs produced by the Ironwood wind farm through a 20-year agreement.
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