NJR Clean Energ
y Ventures (NJRCEV), the unregulated clean energy subsidiary of New Jersey Resources (NJR), today announced the acquisition of its first onshore wind project.
Named for the Montana town it is adjacent to, the Two Dot wind farm will be located on 176 acres of rural agricultural land, approximately 93 miles east of the state capital of Helena. NJRCEV will invest approximately $22 million and be responsible for constructing, owning and operating the wind farm that will consist of six, GE 1.62 megawatt, 87-meter rotor diameter wind turbines for a total capacity of 9.72 megawatts.
“The acquisition of the Two Dot wind project is a significant milestone for NJR Clean Energy Ventures,” said Laurence M. Downes, chairman and CEO of New Jersey Resources. “As our first onshore wind project, it represents a viable long-term growth opportunity for our company and shareowners. We believe it is a sound investment that advances the planned diversification of our clean energy portfolio.”
The project was developed by OwnEnergy, Inc., a developer of mid-size and community wind projects. OwnEnergy's business model involves partnering with local energy entrepreneurs to co-develop mid-size wind farms. In 2012, NJRCEV acquired an approximate 19 percent ownership position in OwnEnergy, with an option to purchase projects that fit its investment profile. This is the first OwnEnergy project purchased by NJRCEV.
NJRCEV will engage Mortenson Construction for the engineering, procurement and construction of the project. A leader in renewable energy construction, Mortenson has completed 124 wind projects, totaling over 13,000 megawatts of clean, renewable energy, or approximately 20 percent of the installed wind capacity in the United States, since 1995. NJRCEV expects the wind farm will be operational by summer 2014.
The energy produced at Two Dot, as well as the renewable attributes, will be sold through a 25-year power purchase agreement with NorthWestern Energy, a natural gas and electricity supplier that serves over 673,000 customers in Montana, South Dakota and Nebraska. Additionally, NJRCEV expects the wind farm will qualify for federal production tax credits (PTC), which are based on kilowatt-hour output. All PTCs generated by Two Dot will be retained by NJR.
NJRCEV invests in, owns and operates renewable energy projects that generate clean power and provide low-carbon energy solutions. These solutions benefit its customers, while providing growth opportunity for shareholders. To date, NJRCEV's approach has focused on commercial and residential solar project development in New Jersey. As a part of its clean energy strategy, NJRCEV will look to diversify its holdings to include small to mid-sized onshore wind projects, supported by long-term power purchase agreements, as well as other energy investments such as combined heat and power (CHP) projects.