New York City, October 21, 2010 – Tokyo-based Itochu Corp. and GE have completed the first transaction under their collaboration agreement by making a co-investment in the estimated $319 million CPV Keenan II wind farm under construction in Oklahoma.
This co-investment is the first transaction under the collaboration and cooperation agreement that GE and Itochu finalized in May to identify co-investment opportunities in renewable energy worldwide.
Itochu and GE also retain the option to jointly invest an additional $100 million in partnership equity upon commencement of Keenan II’s commercial operation, expected in December.
GE Energy Financial Services originally acquired Keenan II, a 152-MW wind farm developed by CPV Renewable Energy Co., in February of this year.
Located 12 miles southwest of Woodward, Oklahoma, the project will consist of 66 2.3-MW wind turbines spread over 8,000 acres, and is expected to generate enough electricity to power about 45,000 average Oklahoma homes and displace about 413,000 short tons a year in greenhouse gas emissions – the equivalent of taking nearly 72,000 cars off the road. The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Co.
The construction, led by Delaney Group, Inc., is on schedule. Major construction milestones include the development of access roads, laying of turbine foundations, developing a power collection system, substation, transmission line, meteorological towers and erection of the turbines.
Operations and maintenance services have previously been contracted to NAES Corporation, a unit of Itochu and the world’s largest independent, third-party provider of power plant operations and maintenance services.
Wind comprises more than 80 percent of GE Energy Financial Services’ renewable energy portfolio. The portfolio includes equity investments in 58 wind farms with a total capacity to produce 6.1 GW of electricity, as well as loans to 38 wind farms totaling 1.4 GW.
GE Energy Financial Services holds a renewable energy investment portfolio of $6 billion, working with a wide variety of developer and investment partners. The investments span wind, solar, biomass, hydroelectric and geothermal power generation projects.