Duluth-based Allete, Inc.-parent company of electric utility Minnesota Power, among other businesses-on Thursday announced the launch of a new wholly owned subsidiary, Allete Clean Energy.
The new company, which will operate independently of Minnesota Power, plans to acquire or develop clean energy projects, Allete said. It will market long-term purchased power contracts to electric utilities, cooperatives, municipalities, independent power marketers, and large end-users. It's initially targeting capital projects in the range of $50 million to $150 million.
In addition to wind, hydropower, and biomass projects, Allete Clean Energy will pursue low-emission energy fuels such as natural gas, as well as solar energy and other new power production technologies.
"Establishing Allete Clean Energy demonstrates our firm belief that over the long term, cleaner and more sustainable energy sources will gain an increasingly important role in our nation's energy mix," Chairman, President, and CEO Alan R. Hodnik said in a statement.
Eric Norberg, who previously served as Minnesota Power's senior vice president of strategy and planning, will serve as president of the new subsidiary. He played a significant role in the development of Minnesota Power's wind farms in Minnesota and North Dakota, Allete said.
In addition to Minnesota Power and recently launched Allete Clean Energy, Allete owns BNI Coal and Superior Water, Light, & Power Company.