Exelon Corp to acquire Deere's green power unit for $860 million
31 Aug 2010
The largest owner and operator of nuclear power plants in the US, Exelon Corp today said that it will buy John Deere Renewables (JDR), the wind energy business of Deere & Co, for about $860 million to become the largest wind generator in the US.
Exelon will acquire JDR's 735 megawatts of installed, operating wind capacity, which it said could power 160,000 to 220,000 households, spread across 36 projects in eight states.
Approximately 75 per cent of the operating portfolio of JDR has already been sold under long-term power purchase arrangements.
As part of the acquisition, Exelon will also have the opportunity to set up 1,468 MW of new wind projects that are in various stages of development, including the 230 MW in advanced stages of development.
The acquisition, which is valued at approximately $860 million, has a provision for up to an additional $40 million upon construction begins on advanced development projects.
On the closure of the deal, JDR will become part of the Exelon Power division of Exelon Generation, which already owns more than 1,000 MW of owned and contracted renewable power, including hydroelectricity, wind, landfill gas and solar.
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