Jul 15, 2011

Duke Energy Buys CPV's Cimarron 2 Project

Acquiring a near shovel-ready project, Duke Energy for the second time in a month announced plans to build a wind farm in Kansas.

Duke Energy Renewables purchased the 131-MW Cimarron 2 project in Gray County, approximately 200 miles west of Wichita, from CPV Renewable Energy Co. Duke said it would build, own, and operate the facility. CPV will continue to own the first phase of the wind project, Cimarron 1.

Under the terms of a previously announced power purchase agreement entered into between Kansas City Power & Light (KCP&L) and CPV, KCP&L will purchase all of the electricity and associated renewable energy credits produced by Cimarron 2.

Duke Energy Renewables plans to start construction on Cimarron 2 this fall and achieve commercial operation by next June. The wind farm, which will be sited on 16,000 acres of leased farmland, will be able to generate electricity for nearly 40,000 homes, according to the company.

"Duke Energy Renewables is pleased to acquire this high-quality wind power project from CPV Renewable Energy and looks forward to helping Kansas City Power & Light deliver zero-emission electricity to its customers," said Duke Energy Renewables Senior Vice President Tony Dorazio.

"CPV Renewable Energy Company has teamed up with Duke Energy Renewables to ensure Cimarron 2 meets the needs of Kansas City Power & Light’s customers," said CPV Senior Vice President Sean Finnerty. "The project will bring significant benefits locally and to the citizens of Kansas."

Duke Energy Renewables owns nearly 1,000 MW of generating capacity at nine U.S. wind farms—four in Wyoming, three in Texas, one in Colorado and one in Pennsylvania. Duke announced plans to build the 168-MW Ironwood project in Ford County, Kan., on May 24, and on May 26 the company said it has entered an agreement to purchase the 20-MW Shirley project in Glenmore, Wis.

Marathon Capital of Bannockburn, Ill., acted as financial advisor to CPV Renewable Energy in the sale of the Cimarron 2 project and also acted as financial advisor to Central Hudson Enterprises Corporation in its sale of the Shirley Wind project.

 

About Marathon Capital, LLC

Marathon Capital is an experienced investment banking firm focused on the global energy and infrastructure markets, with expertise in wind financing, renewable energy financing, and energy transactions. Marathon is headquartered in Bannockburn, Illinois and maintains offices in San Francisco. For more information about our wind financing services, visit Marathon Capital's website: www.marathon-cap.com or call 847-574-2670.