Global power giant BP and Sempra US Gas & Power are set to expand their strategic relationship by investing $1bn to develop two wind farms in the US.
The Mehoopany wind farm in Pennsylvania and the Flat Ridge 2 facility in Kansas are set to have a combined capacity of 560MW and will be the largest built in their respective states. Both projects are supported by long-term power purchase agreements and are expected to be in commercial operation by the end of 2012.
Blatter Energy has been contracted to build the 262 turbine, 419MW Flat Ridge 2 project. Electricity from the site will be sold to the Associated Electric Cooperative, Southwestern Electric Power and an unnamed third party.
Renewable Energy Systems America will construct the 88 turbine, 141MW Mehoopany plant, with power generated to be sold to Old Dominion Electric Cooperative and the Southern Maryland Electric Cooperative. General Electric will provide turbines for both facilities.
John Graham, president and CEO, BP Wind Energy, said, 'Today's announcement reinforces BP's commitment to produce essential sources of energy and provide cost-competitive power to our customers. Our strategic relationship with Sempra US Gas & Power also continues to grow as a result of our aligned thinking and professional approach to energy generation. As new members of the community where the Mehoopany and Flat Ridge 2 wind farms are to be built, we will strive to further enhance our proven track record in construction safety and on-going operational excellence.'
Jeffrey Martin, president and CEO of Sempra US Gas & Power, added, 'Through strategic partnerships with world-class companies like BP, Sempra US Gas & Power continues to grow a highly successful wind business while extending its position as a leading solar energy developer. This is an exciting time for our company. Over the next 12 months we expect to more than double the size of our operating wind and solar generation portfolios, resulting in significantly improved recurring cash flows from long-term contracted assets.'