Allete Inc. announced Tuesday morning it will sell a 30% ownership stake in the planned Nemadji Trail Energy Center to North Dakota-based Basin Electric Power Cooperative for approximately $20 million.
Allete, the parent company of Minnesota Power and Superior Water, Light and Power, will retain a 20% ownership stake in the planned Superior natural gas power plant through its subsidiary South Shore Energy LLC. According to Allete, the energy company expects to invest a total of $140 million in the NTEC project.
Dairyland Power Cooperative of La Crosse, Wisconsin, will remain a 50% owner of the planned facility. NTEC will be the largest private investment in Douglas County history, proposed at $700 million. The sale of ownership stake to Basin Electric will not change the size of the NTEC project, Allete said in the announcement.
Minnesota Power is now expected to contract for a lower amount of NTEC’s energy, but will continue as constructor and operator of the plant. Dairyland Power and Basin Electric will use the remaining capacity of NTEC’s generation to serve their cooperative members, the news release said.
Allete stated that it is working with its two partners to secure the necessary permits to begin construction of the plant. The Minnesota Public Utilities Commission approved NTEC in October 2018. The Public Service Commission of Wisconsin approved NTEC in January 2020 after a review that included a full Environmental Impact Statement.