BP Wind Energy North America has reached an agreement to sell its proposed 150MW Fowler Ridge 4 wind project in western Indiana to US developer Pattern Energy Group, officials from both companies tell Recharge.
declined to discuss terms of the deal, which will require approval by the
Federal Energy Regulatory Commission (FERC), which regulates interstate
transmission of electricity, natural gas and oil.
BP Wind Energy North America, a unit of UK oil and gas group
BP, has asked FERC for a positive ruling by mid-February to close the deal with
Pattern, the officials say. FERC did not
immediately return a phone call seeking comment.
Electricity generated by Fowler Ridge 4 will flow into PJM
Interconnection, a regional
transmission organization that coordinates the movement of
wholesale electricity in all or parts of 13 states and the District
The project will utilize up to 94 wind
turbines. Fowler Ridge 1, 2 and 3 contain a combined 355 turbines with 499.8MW nameplate capacity.
Pattern is flush with cash after a successful initial public
offering last September when it raised $404.8m. Share closed down 0.2% Tuesday in
New York at $29.00 versus the $22.00 IPO price. The company is looking to
achieve rapid growth in the Americas.
Pattern has six operating wind farms totaling 1.0f4GW
capacity – four in the US, one in Manitoba, Canada, and one in Puerto Rico.
Four are in development totaling 716MW – two in Ontario, Canada, one in Texas
and one in Chile.
BP confirmed last year that it plans
to sell its entire US wind development portfolio comprising 18 projects – but
will retain its operating assets. At that time, the company said the proposed
sale could occur as a single transaction or multiple ones with buyers that will
continue to develop the projects.
projects represent approximately 3GW of potential wind capacity in various
stages of development across the US.
operational wind farms located in nine US states that have a combined
generating capacity of 2.6GW.
giant initially announced the sale of its entire wind business, but reversed
its plans last July after failing to secure a bid that met its valuation for
sale was announced, analysts pointed to the highly attractive nature of much of
BP’s wind fleet, but also highlighted several risk factors that potential
buyers would have to weigh up before making an offer.
included a significant presence of Clipper Windpower’s 2.5MW turbine in the BP
fleet. The company was the biggest customer of Clipper, which experienced a
troubled technical track record and is now in the hands of a US private equity