Expanding their renewable energy portfolios, three global companies – Google (Nasdaq: GOOG) and subsidiaries of Itochu Corporation (ITOCY.PK) and Sumitomo Corporation (8053.T) – have joined GE (NYSE: GE) and project developer Caithness Energy as owners of the world’s largest planned wind farm.
The 845 megawatt (MW) Shepherds Flat wind project is under construction near Arlington, Oregon.
Google, Itochu Corporation subsidiary Tyr Energy and Sumitomo Corporation subsidiary Sumitomo Corporation of America are investing approximately $500 million in the $2 billion project.
The Shepherds Flat wind project stretches across 30 square miles of Gilliam and Morrow Counties in north-central Oregon. Once completed next year, the project will generate enough energy to supply more than 235,000 average US homes.
Participation in the Shepherds Flat wind farm broadens the renewable energy portfolio of its new investors:
Google has now invested over $350 million in clean energy, including two recent investments in a German photovoltaic power plant, and BrightSource Energy’s Ivanpah Solar Electric Generating System, the world’s largest solar project, under construction in California.
Tokyo-based Itochu Corporation owns, operates and is developing more than 15 power generation facilities across the US through Tyr Energy. Itochu entered into a collaboration and cooperation agreement with GE last year to identify co-investment opportunities in renewable energy worldwide. Under the agreement, it partnered with GE Energy Financial Services on the 152 MW CPV Keenan II wind farm in Oklahoma.
Tokyo-based Sumitomo Corporation has accumulated an approximately 5,300 MW global power generation portfolio, including assets owned by New York-based subsidiary Sumitomo Corporation of America. Sumitomo’s wind energy assets include the 120 MW Stanton, Texas wind farm jointly owned with GE Energy Financial Services, as well as two operating wind farms in Japan and one in China.
Construction of the Shepherds Flat wind project is proceeding in three phases. All turbine foundations have been completed and electrical work and road construction are nearing completion on the first 265 MW phase; road and turbine foundation construction is more than half complete on the second 290 MW phase; and road construction and foundation construction are continuing on the third 290 MW phase.
Turbine shipments to the site are expected to begin this spring. Construction involves not only the erection of 338 turbines, but development of 95 miles of roads and 167 miles of transmission lines. Caithness Energy estimates the project will inject $16 million annually in direct economic benefits into Oregon, and will create 400 wind energy jobs during construction and 35 during operation.
The project will be the first wind farm in the US to use GE Energy’s 2.5xl wind turbines, which are larger than its other models and use permanent magnet generators – turbine technology that improves efficiency, reliability and grid connection, helping to lower wind energy costs. The 2.5xl wind turbines for the Shepherds Flat wind farm are assembled at GE’s site in Pensacola, Florida. In addition to supplying the wind turbines, GE will provide operational and maintenance services to the project.
Under three 20-year power purchase agreements, the Shepherds Flat wind farm will supply renewable energy to Southern California Edison, an Edison International (NYSE:EIX) company, helping California meet its renewable energy goals.
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