Minnesota Power to build 200-megawatt wind farm in North Dakota

DULUTH — Minnesota Power, a utility division of ALLETE, Inc., announced plans Monday to build a 200-megawatt wind energy project in North Dakota, marking another major step in the company’s ongoing transition to a carbon-free energy future.

The proposed Longspur Wind project, located in Morton and Mercer counties near Minnesota Power’s existing Bison Wind Energy Center, will feature 45 turbines and connect to the company’s high-voltage direct current transmission line that delivers power from North Dakota to northeastern Minnesota. Construction is expected to begin in 2026, pending regulatory approvals in both Minnesota and North Dakota, with the project slated to be operational by late 2027.

“The enormous scope and scale of a successful energy transition require significant investment in new infrastructure and generation both to reduce carbon and to safeguard the reliable service that powers homes, schools, hospitals, businesses and our regional economy,” said ALLETE CEO Bethany Owen. “Longspur is part of the approximately $5 billion in investments we will be making over the next five years to serve our region. This exciting project illustrates the importance of our proposed acquisition by experienced long-term investors CPP Investments and GIP. These investors’ commitment to provide capital as part of this transaction will help us build projects like Longspur and secure our ability to achieve a truly sustainable clean-energy future.”

Longspur is one of several initiatives tied to Minnesota Power’s EnergyForward strategy, which aims to deliver 80% renewable energy by 2030 and 90% by 2035 — in line with Minnesota’s carbon-free energy standards. Other efforts include large-scale solar development and major regional transmission upgrades.

“This project highlights Minnesota Power’s EnergyForward commitment to customers to keep bills as low as possible as we advance a reliable, resilient sustainable clean-energy transition,” said Josh Skelton, ALLETE vice president and Minnesota Power chief operating officer. “Longspur Wind’s use of existing infrastructure such as a substation and transmission line also reduces costs for customers now and in the future.”

The project was selected through a competitive bidding process under Minnesota Power’s 2024 wind energy request for proposals. The selection was reviewed by an independent evaluator, who confirmed it as the most cost-competitive option for customers.

Company officials say Longspur will provide significant economic benefits to the region. Hundreds of union construction jobs are expected to be created during development, and once operational, the project will generate millions of dollars in local tax revenue to support schools, infrastructure and public services. Participating landowners will also receive ongoing lease payments, supporting long-term rural economic stability.

Minnesota Power plans to hold public meetings and community engagement sessions as development progresses.

The company became the first Minnesota utility to deliver 50% renewable energy to customers in 2020. With Longspur’s 200-megawatt addition, Minnesota Power moves closer to its 2030 EnergyForward target, further strengthening its position as a leader in renewable energy in the Upper Midwest.

The project is expected to qualify for full federal production tax credits.

The wind project announcement comes as ALLETE awaits final regulatory approval of its proposed acquisition by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The transaction, expected to close in 2025, has already cleared regulatory hurdles from ALLETE shareholders, the Federal Energy Regulatory Commission and the Public Service Commission of Wisconsin.

A settlement agreement with the Minnesota Department of Commerce has been submitted to the Minnesota Public Utilities Commission as part of the MPUC’s broader review of the deal.

Following the closing, ALLETE and Minnesota Power will remain headquartered and locally operated in Duluth. The company emphasized that costs related to the transaction will not impact retail or municipal customer rates.

Minnesota Power provides electric service to approximately 150,000 customers across a 26,000-square-mile area in northeastern Minnesota. The utility also serves 14 municipalities and several of the nation’s largest industrial power users. More information is available at www.mnpower.com.

ALLETE also owns Superior Water, Light and Power of Wisconsin, ALLETE Clean Energy, BNI Energy in North Dakota, and New Energy Equity in Maryland, and holds an 8% equity interest in the American Transmission Co.

More details on the proposed acquisition can be found at www.alleteforward.com.