BP And Sempra U.S. Gas & Power Announce Plans To Jointly Develop Hawaii Wind Farm
SAN DIEGO, May 17, 2012 /PRNewswire/ -- Sempra U.S. Gas & Power and BP Wind Energy today announced plans to jointly develop the Auwahi Wind farm in Hawaii. This is the fifth project developed under a strategic partnership between the two companies that includes more than 1,000 megawatts (MW) of wind generating capacity in operation or under construction.
Located in southeastern Maui, the 21-MW wind farm will utilize eight Siemens wind turbines to generate enough renewable power for approximately 10,000 average Maui homes. Initial construction activities are underway and full mobilization at the site is slated to begin by the end of the second quarter 2012. The project will employ about 150 workers during the peak of construction and is expected to be in commercial operation by year-end 2012. The balance of plant contract has been awarded to RMT WindConnect.
Sempra U.S. Gas & Power will continue leading the development of Auwahi Wind and operate the project once construction is complete.
"We are pleased to have the opportunity to further expand our highly successful strategic partnership with BP Wind Energy while helping Hawaii advance one step closer to its renewable energy goals," said Jim Sahagian, vice president of renewables for Sempra U.S. Gas & Power. "Our companies share a commitment to building and operating the Auwahi Wind farm in a way that reflects Maui's commitment to environmental protection. We look forward to providing a stable supply of clean power to the region and becoming a long-term partner with the local community."
"BP is once again proud to partner with Sempra U.S. Gas & Power to grow our investment in the renewable power sector to produce essential sources of cost-competitive energy to our customers," said John Graham, president and CEO, BP Wind Energy. "Today marks an important milestone as this is BP's first venture in delivering clean energy to the people of Hawaii."
The entire power output from the wind farm has been sold under a long-term power purchase agreement to the Maui Electric Company. This new source of locally-produced wind power helps Hawaii reach its clean energy goal to secure 40 percent of its electricity from renewable sources by 2030.
In a first for the BP and Sempra U.S. Gas & Power strategic partnership, the Auwahi Wind farm will utilize a battery storage unit capable of storing in excess of 4 megawatt hours of renewable power. This stored electricity will help to regulate the intermittent wind power, providing a valuable source of grid stability for Maui Electric Company.
In January 2012, BP and Sempra U.S. Gas & Power announced an expansion of their strategic relationship by jointly investing more than $1 billion to build 560 MW of wind power. In Kansas, the companies are building the 419 MW Flat Ridge 2 Wind Farm and are finalizing joint venture agreements for a 51 MW expansion project. In Pennsylvania, the 141 MW Mehoopany Wind Farm is in construction. Both the Kansas and Pennsylvania wind farms are expected to be in commercial operation by year-end 2012 and will be the largest wind projects ever constructed in their respective states. The companies are also equal partners on the 200 MW Fowler Ridge 2 Wind Farm in Indiana and the 250 MW Cedar Creek 2 Wind Farm located in northeastern Colorado.
About Sempra U.S. Gas & Power
Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas solutions. The company operates solar, wind and natural gas power plants that generate enough electricity for nearly 1 million homes, along with natural gas storage and pipelines, and distribution utilities. Sempra U.S. Gas & Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2011 revenues of $10 billion. The Sempra Energy companies' nearly 17,500 employees serve about 31 million consumers worldwide. For more information, visit www.SempraUSGP.com.
BP is one of the world's largest energy companies. In the US, BP has approximately $52 billion in assets and employs some 23,000 staff. The company's main businesses are exploration and production of oil and gas; refining, manufacturing and marketing of oil products and petrochemicals; and transportation and marketing of natural gas. With growing businesses in wind power and advanced biofuels, BP Alternative Energy has invested around $7 billion in low carbon energy development since 2005, $4 billion of that in the US.
BP Wind Energy is a principal owner and operator of wind power facilities with interests in 13 wind farms. BP Wind Energy has a gross generating capacity of 1,955 MW – enough electricity to power over 586,000 average American homes. For more information, visit the company's Web site at http://www.bpalternativenergy.com.
For Sempra Energy Investors
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "outlook", "depends," "pursue" or similar expressions, or discussions of guidance, strategies, plans, goals, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody's A-rated utility bond yields, on the California utilities' cost of capital; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials; risks posed by decisions and actions of third parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas and electricity delivery; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.
These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra U.S. Gas & Power, LLC is not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra U.S. Gas & Power, LLC is not regulated by the California Public Utilities Commission.
SOURCE Sempra U.S. Gas & Power
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