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Released May 10, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Central U.S. power providers ALLETE Incorporated (NYSE:ALE) (Duluth, Minnesota) and Ameren Corporation (NYSE:AEE) (St. Louis, Missouri) are investing heavily in renewable energy and transmission & distribution (T&D) developments, as they face pressure from investors and regulators to further decarbonize and contribute more to the power grid. Industrial Info is tracking more than $3 billion worth of active projects from the two companies.
ALLETE Reports Strong Gains
ALLETE reported net income of $66.3 million for first-quarter 2022, a 28% increase from first-quarter 2021. The strongest gains came from the ALLETE Clean Energy division, which reported net income of $16.5 million, more than double the $7.4 million from the same period last year. The company attributed these gains to higher wind resources when compared with 2021.
In February, ALLETE announced its projected capital-investment program through 2026 totaled $1.8 billion, predominantly for regulated or utility-like clean-energy infrastructure.
Click on the image at right for a graph detailing ALLETE's active projects, by fuel type.
The ALLETE Clean Energy subsidiary is developing the $106 million Northern Windfarm Energy Project in Lake Wilson, Minnesota, which is designed to generate 122 megawatts (MW) from about 45 turbines of differing capacities. ALLETE also is seeking permits for the 205-MW Ruso Windfarm in Benedict, North Dakota, which will use about 66 turbines. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Lake Wilson and Benedict projects.
Last month, ALLETE wrapped up its acquisition of New Energy Equity (Annapolis, Maryland), a distributed solar developer with more than 250 projects across the U.S., with an aggregate capacity of more than 330 MW. New Energy has a development pipeline of about 2 gigawatts (GW) across 26 states over the next three years, including a pair of small-scale, community-based development projects in Minnesota: the Pine Island Township solar-battery energy-storage system (BESS) facility in Mazeppa and the Minneola Township solar-BESS facility in Zumbrota. Each system would generate about 1 MW and store about 1.5 MW, specifically for nearby residential and commercial customers. Subscribers can read detailed reports on the Pine Island solar and BESS projects, and the Minneola solar and BESS projects.
ALLETE already is at work on a trio of small-scale solar projects across Minnesota, all of which are considered likely to begin construction later this summer: the $17 million Sylvan Solar Plant in Pillager, with 10 MW of capacity; the $16 million Laskin Solar Plant in Aurora, with 9.6 MW; and a $5 million solar facility in Duluth, with 1.6 MW. Subscribers can read Industrial Info's reports on the Sylvan, Laskin and Duluth projects.
In a recent quarterly earnings-related conference call, ALLETE executives acknowledged the supply-chain problems facing the solar industry. "We were well aware of supply chain concerns and inflationary pressures during our diligence, and spent a considerable amount of time and resources on research," said Steve Morris, the chief financial officer of ALLETE. "The current market for modules is in the range of sensitivities that allows New Energy to meet their financial targets. And the distributed solar development model continues to be well-positioned, with flexibility around the timing of monetization and higher margin projects relative to utility-scale."
Ameren Benefits from Colder Winter
Ameren reported net income of $252 million for first-quarter 2022, an 8.15% increase from first-quarter 2021, which the company attributed to colder-than-normal winter temperatures and benefits from past infrastructure investments across all its business segments, particularly its Transmission business.
Click on the image at right for a graph detailing Ameren's active projects, by fuel type.
Ameren executives noted in a recent earnings call that a preliminary study from the Midcontinent Independent System Operator (MISO), completed in January, recommended transmission upgrades and additional voltage on the company's transmission system to ensure reliability. MISO manages the transmission systems in 15 U.S. states and the Canadian province of Manitoba. Projects in MISO's long-range transmission planning (LRTP) process include several major developments from Ameren.
"The projects crossing through our Missouri and Illinois service territories provide significant investment opportunities," said Martin Lyons, the chief executive officer of Ameren, in the earnings call. "We believe we are well-positioned to execute on these projects, given the location of the projects and our expertise constructing large regional transmission projects."
Ameren is seeking permits for several major transmission projects that could begin construction within the coming year. These include the:
Earlier in 2021, Ameren had considered a SO2 control retrofit at Rush Island as an alternative to closure, but the recent announcement means that proposal is all but forgotten. Subscribers can learn more from Industrial Info's project report.
"We have a robust pipeline of future investments that will continue to modernize the grid and enable the transition to a cleaner energy future," Lyons said in the earnings call. "This pipeline includes over $45 billion of investment opportunities over the next decade, that will deliver significant value to all of our stakeholders by making our energy grid stronger, smarter and cleaner."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
ALLETE Reports Strong Gains
ALLETE reported net income of $66.3 million for first-quarter 2022, a 28% increase from first-quarter 2021. The strongest gains came from the ALLETE Clean Energy division, which reported net income of $16.5 million, more than double the $7.4 million from the same period last year. The company attributed these gains to higher wind resources when compared with 2021.
In February, ALLETE announced its projected capital-investment program through 2026 totaled $1.8 billion, predominantly for regulated or utility-like clean-energy infrastructure.
Click on the image at right for a graph detailing ALLETE's active projects, by fuel type.The ALLETE Clean Energy subsidiary is developing the $106 million Northern Windfarm Energy Project in Lake Wilson, Minnesota, which is designed to generate 122 megawatts (MW) from about 45 turbines of differing capacities. ALLETE also is seeking permits for the 205-MW Ruso Windfarm in Benedict, North Dakota, which will use about 66 turbines. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Lake Wilson and Benedict projects.
Last month, ALLETE wrapped up its acquisition of New Energy Equity (Annapolis, Maryland), a distributed solar developer with more than 250 projects across the U.S., with an aggregate capacity of more than 330 MW. New Energy has a development pipeline of about 2 gigawatts (GW) across 26 states over the next three years, including a pair of small-scale, community-based development projects in Minnesota: the Pine Island Township solar-battery energy-storage system (BESS) facility in Mazeppa and the Minneola Township solar-BESS facility in Zumbrota. Each system would generate about 1 MW and store about 1.5 MW, specifically for nearby residential and commercial customers. Subscribers can read detailed reports on the Pine Island solar and BESS projects, and the Minneola solar and BESS projects.
ALLETE already is at work on a trio of small-scale solar projects across Minnesota, all of which are considered likely to begin construction later this summer: the $17 million Sylvan Solar Plant in Pillager, with 10 MW of capacity; the $16 million Laskin Solar Plant in Aurora, with 9.6 MW; and a $5 million solar facility in Duluth, with 1.6 MW. Subscribers can read Industrial Info's reports on the Sylvan, Laskin and Duluth projects.
In a recent quarterly earnings-related conference call, ALLETE executives acknowledged the supply-chain problems facing the solar industry. "We were well aware of supply chain concerns and inflationary pressures during our diligence, and spent a considerable amount of time and resources on research," said Steve Morris, the chief financial officer of ALLETE. "The current market for modules is in the range of sensitivities that allows New Energy to meet their financial targets. And the distributed solar development model continues to be well-positioned, with flexibility around the timing of monetization and higher margin projects relative to utility-scale."
Ameren Benefits from Colder Winter
Ameren reported net income of $252 million for first-quarter 2022, an 8.15% increase from first-quarter 2021, which the company attributed to colder-than-normal winter temperatures and benefits from past infrastructure investments across all its business segments, particularly its Transmission business.
Click on the image at right for a graph detailing Ameren's active projects, by fuel type.Ameren executives noted in a recent earnings call that a preliminary study from the Midcontinent Independent System Operator (MISO), completed in January, recommended transmission upgrades and additional voltage on the company's transmission system to ensure reliability. MISO manages the transmission systems in 15 U.S. states and the Canadian province of Manitoba. Projects in MISO's long-range transmission planning (LRTP) process include several major developments from Ameren.
"The projects crossing through our Missouri and Illinois service territories provide significant investment opportunities," said Martin Lyons, the chief executive officer of Ameren, in the earnings call. "We believe we are well-positioned to execute on these projects, given the location of the projects and our expertise constructing large regional transmission projects."
Ameren is seeking permits for several major transmission projects that could begin construction within the coming year. These include the:
- 68-mile Las Vegas-to-Springer line in New Mexico, which is part of the Mora Transmission Project; see project report
- 63-mile Whitewater-to-Bonne Terre line in Missouri, which is part of the St. Francois County Transmission Line Replacement & Improvement Project; see project report
- 14-mile Altenburg-to-Jackson line in Missouri, which is part of the proposed Limestone Ridge Transmission & Substation Project; see project report
- nine-mile line within Lincoln, Illinois, which is part of the Logan County Connector Project; see project report
Earlier in 2021, Ameren had considered a SO2 control retrofit at Rush Island as an alternative to closure, but the recent announcement means that proposal is all but forgotten. Subscribers can learn more from Industrial Info's project report.
"We have a robust pipeline of future investments that will continue to modernize the grid and enable the transition to a cleaner energy future," Lyons said in the earnings call. "This pipeline includes over $45 billion of investment opportunities over the next decade, that will deliver significant value to all of our stakeholders by making our energy grid stronger, smarter and cleaner."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
