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Released November 08, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy company ALLETE Incorporated (NYSE:ALE) (Duluth, Minnesota) mainly services Minnesota and other north-central U.S. states, but is following the nationwide trend of rejecting coal-fired power for natural gas and, increasingly, renewables. The company is extending its reach via a major transmission project with Canada and a series of wind-energy projects in other states. Industrial Info is tracking about $1.74 billion worth of active projects involving ALLETE, more than $636 million of which is under construction.
Click on the image at right for a graph detailing ALLETE's active projects, by U.S. state.
"We anticipate significant investment opportunities in transmission and distribution," said Bethany Owen, the president of ALLETE, in an earnings-related conference call. "With the transformation of generation to more renewable energy sources, there is a growing need for enhanced delivery infrastructure. Already-identified areas include expansion of large-scale transmission capabilities, overall grid modernization and resiliency improvement and physical and cyber security measures."
Minnesota Power is in the last phase of construction on its Great Northern Transmission Line, according to Owen, which is designed to provide 250 megawatts (MW) of carbon-free hydroelectric energy from Canada to the north-central U.S., with completion planned in 2020. Plans include a 120-mile, estimated $268.5 million power line from Duluth to the Canadian border, which will include a 500-kilovolt (kV), high-voltage, direct-current (HVDC) capacity.
The new line is being supported by a new substation in Bovey, and modifications to an existing, adjacent substation in Bovey and an existing substation in Duluth. All phases of the project are owned and managed by Minnesota Power, a utility and subsidiary of ALLETE. For more information, see Industrial Info's project reports on the transmission line, new Bovey substation, Bovey modifications and Duluth modifications.
"In our latest capex [capital spending] projections, we have increased our anticipated investment in the HVDC line by $100 million and expect to further increase our capex for improved resiliency of Minnesota Power's distribution system," Owen said. "Minnesota Power's total investment in this project is approximately $325 million, and it is already contributing to financial results through current cost recovery."
Minnesota Power also is at work on the estimated $2.08 million Bull Moose Transmission Line within Hubbard County, Minnesota, which runs about 2.5 miles. This project is part of Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) roughly $7 billion Line 3 Replacement Project, as it will service Enbridge's crude-oil pump station in Backus, Minnesota. For more information, see Industrial Info's project report.
Earlier this year, Minnesota Power announced it was taking steps to further decarbonize its generation portfolio. The utility signed a power-purchase agreement for one of its windfarms and picked up key regulatory approvals for a natural gas-fired power plant in Wisconsin. For more information, see February 19, 2019, article - Minnesota Power Moves Forward with Generation Decarbonization.
ALLETE Clean Energy, which is ALLETE's second-largest subsidiary, is preparing to nearly double its wind-generation output with a pair of projects under construction outside its home state: the $200 million Glen Ullin Windfarm in Mandan, North Dakota, which is expected to generate 100 MW from 50 turbines, and the $132 million South Peak Windfarm in Raynesford, Montana, which would generate 80 MW from 29 turbines. The projects are set to wrap up later this year and in mid-2020, respectively.
"With more than 550 MW of existing wind generation, ALLETE Clean Energy is adding nearly 500 MW of new wind generation, with a total investment of over $700 million by the end of 2020," Owen said in the conference call. "The Glen Ullin Energy Center and South Peak wind facilities are expected to be in service near the end of 2019 and will significantly contribute to ALLETE's earnings in 2020." For more information, see Industrial Info's reports on the Glen Ullin and South Peak projects.
Owen also expressed optimism about ALLETE's proposed, estimated $270 million Diamond Spring Windfarm in Pontotoc, Oklahoma, which she said would "serve Fortune 500 companies, including Walmart, Starbucks and Smithfield Foods." The 300-MW facility, which would generate energy from about 110 turbines, is expected to be operational in late 2020 and will begin to contribute to ALLETE's earnings in 2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing ALLETE's active projects, by U.S. state."We anticipate significant investment opportunities in transmission and distribution," said Bethany Owen, the president of ALLETE, in an earnings-related conference call. "With the transformation of generation to more renewable energy sources, there is a growing need for enhanced delivery infrastructure. Already-identified areas include expansion of large-scale transmission capabilities, overall grid modernization and resiliency improvement and physical and cyber security measures."
Minnesota Power is in the last phase of construction on its Great Northern Transmission Line, according to Owen, which is designed to provide 250 megawatts (MW) of carbon-free hydroelectric energy from Canada to the north-central U.S., with completion planned in 2020. Plans include a 120-mile, estimated $268.5 million power line from Duluth to the Canadian border, which will include a 500-kilovolt (kV), high-voltage, direct-current (HVDC) capacity.
The new line is being supported by a new substation in Bovey, and modifications to an existing, adjacent substation in Bovey and an existing substation in Duluth. All phases of the project are owned and managed by Minnesota Power, a utility and subsidiary of ALLETE. For more information, see Industrial Info's project reports on the transmission line, new Bovey substation, Bovey modifications and Duluth modifications.
"In our latest capex [capital spending] projections, we have increased our anticipated investment in the HVDC line by $100 million and expect to further increase our capex for improved resiliency of Minnesota Power's distribution system," Owen said. "Minnesota Power's total investment in this project is approximately $325 million, and it is already contributing to financial results through current cost recovery."
Minnesota Power also is at work on the estimated $2.08 million Bull Moose Transmission Line within Hubbard County, Minnesota, which runs about 2.5 miles. This project is part of Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) roughly $7 billion Line 3 Replacement Project, as it will service Enbridge's crude-oil pump station in Backus, Minnesota. For more information, see Industrial Info's project report.
Earlier this year, Minnesota Power announced it was taking steps to further decarbonize its generation portfolio. The utility signed a power-purchase agreement for one of its windfarms and picked up key regulatory approvals for a natural gas-fired power plant in Wisconsin. For more information, see February 19, 2019, article - Minnesota Power Moves Forward with Generation Decarbonization.
ALLETE Clean Energy, which is ALLETE's second-largest subsidiary, is preparing to nearly double its wind-generation output with a pair of projects under construction outside its home state: the $200 million Glen Ullin Windfarm in Mandan, North Dakota, which is expected to generate 100 MW from 50 turbines, and the $132 million South Peak Windfarm in Raynesford, Montana, which would generate 80 MW from 29 turbines. The projects are set to wrap up later this year and in mid-2020, respectively.
"With more than 550 MW of existing wind generation, ALLETE Clean Energy is adding nearly 500 MW of new wind generation, with a total investment of over $700 million by the end of 2020," Owen said in the conference call. "The Glen Ullin Energy Center and South Peak wind facilities are expected to be in service near the end of 2019 and will significantly contribute to ALLETE's earnings in 2020." For more information, see Industrial Info's reports on the Glen Ullin and South Peak projects.
Owen also expressed optimism about ALLETE's proposed, estimated $270 million Diamond Spring Windfarm in Pontotoc, Oklahoma, which she said would "serve Fortune 500 companies, including Walmart, Starbucks and Smithfield Foods." The 300-MW facility, which would generate energy from about 110 turbines, is expected to be operational in late 2020 and will begin to contribute to ALLETE's earnings in 2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
