Algonquin Power & Utilities Corp. ("APUC") (AQN.TO), today announced it has agreed to jointly develop a 150 MW construction stage wind project in the United States with Renewable Energy Systems Americas Inc.
The Deerfield wind power project ("Deerfield") is located in central Michigan and is being constructed on approximately 20,000 acres of land leased from a supportive wind power land owner group. The project will utilize proven turbine technology comprised of 44 Vestas V110-2.0 wind turbines and 28 Vestas V110-2.2 turbines and is estimated to generate 555.2 GW-hrs annually. Deerfield has a 20 year power purchase agreement with Wolverine Power Supply Cooperative, Inc. a local electric distribution utility serving approximately 260,000 customers in Michigan.
The joint venture further expands APUC's presence in the renewable energy space, increasing its North America. The total project cost is expected to be approximately U.S. $303 million. Non-recourse project financing will be arranged by the joint venture including approximately U.S. $151 million of tax equity. The project is expected to achieve commercial operation at the end of 2016 with its first full year of operation being 2017.
"We are pleased to partner with Renewable Energy Systems Americas Inc. on the Deerfield wind project. This project demonstrates our capacity to create long term shareholder value through investments in renewable energy generation projects", commented Chief Executive Officer Ian Robertson.