Building Energy Wind Iowa has achieved a partnership agreement and a capital contribution agreement with Capital One Bank for the construction and operation of a 30 MW wind farm located in Iowa, USA.
The total project investment is estimated at US$56 million. Capital One Bank commits to a tax equity contribution of approximately US$33 million to the project portfolio and will release funds at the commercial operation date expected in the fourth quarter of 2016, subject to fulfillment of requirements outlined in the capital contribution agreement. The equity interest will allow them to obtain the tax and financial benefits attributed to the project.
The Iowa Wind Distributed Generation project represents the first wind farm developed by Building Energy and Optimum Renewables, a local developer, under a strategic development agreement. The project, located north of Des Moines, in Story, Boone, Hardin and Poweshiek counties, is comprised of ten onshore wind turbines, each with a rotor diameter of 125 meters and a 3.0 megawatt generator mounted on an 87.5 meter steel tower. Building Energy's Wind farms will generate 110,000 MWh per year.
The project benefits from the strong wind resources in the state of Iowa and the wind farm will be built in 4 different counties in order to provide renewable energy to as many local communities as possible and to keep electricity rates stable and affordable.
Andrea Braccialarghe, Building Energy Managing Director USA, stated:
"We are extremely pleased with the closing of this agreement, which further demonstrates Building Energy commitment to Iowa and North America as a whole. A market in which we started off with a solar portfolio, we have now expanded into other generation technologies including wind power. We are planning to further expand our generation capacity in North America, continuing to leverage on our multi-technology strategy with our commitment to environmental responsibility".
George Revock, Managing Director and Head of Alternative Energy and Project Finance at Capital One Bank, adde:
"We are pleased to work with Building Energy, a global leader in the renewable energy market. This investment will help Building Energy provide affordable and sustainable energy to local communities across Iowa, and also will advance Capital One's sustainable energy initiative."