San Francisco, March 17, 2010 – Pattern Energy Group acquired the 283 MW Gulf Wind project from Babcock and Brown.
Gulf Wind includes 118 wind turbines and generates 283 MW of energy, the power equivalent to the annual energy usage of about 80,000 Texas homes.
Gulf Wind is strategically located on the Gulf Coast in Kenedy County, Texas, where favorable wind conditions allow the project to maximize wind energy production during times of peak demand and peak pricing.
The project is in close proximity to transmission lines that allow for the efficient delivery of power to nearby markets. The majority of Gulf Wind’s output will be sold to a credit-worthy third party, with its price secured under a long-term power agreement.
Pattern was formed as an independent company eight months ago and now has nearly 400 MW of premium wind projects in operation or under construction across North America, counting the addition of Gulf Wind.
The “early warning radar” system detects approaching bird activity, assesses mortality risk conditions, and automatically activates mitigation responses, including the idling of all turbines when appropriate.
The Gulf Wind project has been operational for about one year and is located on a portion of the Kenedy Ranch owned by the Kenedy Memorial Foundation near the town of Sarita, Texas.
According to the terms of the transaction, Pattern will make monthly royalty payments to the Kenedy Memorial Foundation, which will allow the Foundation to increase its charitable work in South Texas.
The project provides millions in tax benefits to the region, including paying nearly $3.5 million in local taxes for 2010.
Pattern executed financing agreements with leading wind project lenders to secure debt to fund a portion of the purchase price. The lenders include: Mizuho Corporate Bank LTD; Banco Espirito Santo, S.A.; Bayerische Landesbank; Commerzbank AG; HSH Nordbank AG; and, ING Capital LLC.
The acquisition concludes a nearly one year, competitive sale process conducted by Babcock and Brown.