ALLETE's (ALE) Arm to Sell 100-MW Wind Energy From Caddo Site
ALLETE, Inc.’s ALE unit ALLETE Clean Energy inked a deal to sell 100 megawatt (MW) renewable energy to Oshkosh Corporation and Hormel Foods from its Caddo wind site. The 303-MW site is currently under construction in Oklahoma.
With this project, the subsidiary’s total operating, under-construction and build-transfer wind energy endeavors will increase to more than 1,450 MW capacity. The latest deal win will double the unit’s capacity to meet rising corporate demand for clean energy.
ALLETE’s Focus on Clean Energy
ALLETE set smaller milestones, per which it will supply 70% renewable energy by 2030 and achieve a coal-free energy supply by 2035. Further, it targets to achieve an 80% reduction in carbon emissions by 2035 from its 2005 base line. By attaining these goals, the company will meet the state of Minnesota’s greenhouse gas reduction target, 15 years ahead of schedule. Also, the utility’s another arm Minnesota Power aims at delivering 100% carbon-free energy to its customers by 2050.
Remarkably, in December 2020, Minnesota Power reached its 50% clean energy target and also made the Nobles 2 wind project in Southwestern Minnesota operational.
Transition in Energy Space
Utilities on their own are concentrating on generating more electricity from clean resources. The companies are now focused on producing more electricity from renewable agents and natural gas. In 2019, wind energy was a source for supplying 7.3% of total electricity generation in the United States. Per U.S. Energy Information Administration, total annual use of wind to generate electricity in the United States increased from 6 billion kilowatthours (kWh) in 2000 to 300 billion kWh in 2019. This capacity is likely to improve by 15.3 gigawatts (GW) in 2021 and by an extra 3.6 GW in 2022.
Some other Utilities are also focused on lowering emission and are cutting down on production from coal units, replacing the same with clean energy sources. Utilities like Xcel Energy XEL, Duke Energy DUK and DTE Energy DTE already set a target of net-zero emission companies by 2050.
Zacks Rank and Price Performance
ALLETE currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, shares of the utility have rallied 21% against the industry’s 1.9% fall.
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