Sumitomo Corp. of America (SCOA) is to become a 50-50 equity partner in two large-scale wind farms Duke Energy Renewables is building in Kansas.
Today’s announcement revealed that SCOA, part of Tokyo-based Sumitomo Corp, is buying a 50 percent stake in the 131-megawatt (MW) Cimarron II Windpower Project in Gray County and the 168-MW Ironwood Windpower Project in Ford County. Construction of both wind farms will be completed later this year.
Duke Energy Renewables will operate and maintain Cimarron II and Ironwood once they are in service, with SCOA being involved in management of the projects.
"Forging this new strategic partnership with Sumitomo – a strong global company – helps Duke Energy Renewables manage its capital deployment effectively and fuel continued growth in its wind and solar power businesses," said president Greg Wolf.
"This joint venture marks another step in the evolution of Sumitomo's renewable energy business strategy, as we take a more active role in wind and other renewable projects,” said Masao Miyamoto, vice president and head of SCOA's Power and Telecom Business.
“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."
Both projects have long-term contracts in place to sell the electricity they generate. Kansas City Power & 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 will buy all the power and RECs produced by the Ironwood wind farm, also through a 20-year agreement.
