5 January 2007 -- enXco, Inc. announced that it has closed on the project financing for Minnesota's largest wind farm, the $385 million Fenton Wind Energy Project under construction in Murray and Nobles Counties, Minn., US, with its financial partners Union Bank of California and GE Energy Financial Services.
Construction of the 205-MW wind farm began in September, and it is set for commercial operation in the second half of 2007. Consisting of 137 GE 1.5 MW turbines, the Fenton wind farm will be operated and maintained by enXco Service Corp.
Union Bank of California, GE Energy Financial Services and other equity investors are financing the project. Union Bank of California acted as lead underwriter for both the debt and equity financing for the project and will syndicate some of the equity. GE Energy Financial Services is the largest equity investor in the project, with a 50 percent of the equity stake sold by enXco. Additional financial details were not disclosed.
Power from the Fenton project will be sold to Northern States Power, a subsidiary of Minnesota's largest utility, Xcel Energy, under a 25-year purchase agreement. Among the nation's utilities, Xcel is the largest purchaser of wind power. The state of Minnesota, which ranks fourth among US states in terms of wind power installed, requires Xcel to obtain 11 percent of its energy from renewable sources by 2015.