The Canadian producer secured the contract with an unnamed "investment grade US financial institution" for 87% of the project’s output, it announced yesterday. It is unknown if the remaining 13% of output has been purchased.
Under the contract, Capital Power would swap the market revenue from a "fixed volume" of the project’s generation for a "fixed price payment over a 12-year term".
The company would not disclose what the fixed volume or fixed price were, stating that the terms of the contract were confidential.
Capital Power said the agreement would enable it to secure a long-term predictable revenue stream from the project.
The company is in the final stages of selecting a turbine supplier for the project in McHenry County, North Dakota.
Vestas provided the turbines for Capital Power’s seven other Canadian and US projects, apart from the K2 site in Ontario, Canada, which uses Siemens turbines.
New Frontier Wind is expected to cost approximately C$182 million ($145 million) and due to go online in December 2018, Capital Power announced.
When completed, New Frontier Wind would be the company’s third wind farm in the US, adding to its portfolio of the 178MW Bloom Wind project in Kansas, and the 50MW Macho Springs site in New Mexico.
The company currently owns 4.5GW of power generation capacity across the US and Canada — 755MW of which comes from wind farms.