MDU Resources Group announces that its subsidiary, Montana-Dakota Utilities (MDU), has signed a purchase agreement to acquire a 49% ownership interest in the Badger Wind Farm. This acquisition represents 122.5 MW of the project's total 250 MW generation capacity. The purchase agreement is contingent on regulatory approval from the North Dakota Public Service Commission (NDPSC).

MDU's 2024 Integrated Resource Plan (IRP) identified the need for additional generation capacity to meet future energy demands. The investment in the Badger Wind Farm was selected as the least-cost option for MDU's customers, aligning with the company's commitment to providing reliable and affordable energy. Construction is currently underway near Wishek, ND.

This strategic investment is part of MDU Resources' five-year capital expenditure plan. The estimated cost for MDU to purchase this stake is $294 million.

MDU previously executed a Power Purchase Agreement (PPA) for 150 MW of the Badger Wind Farm's output last November, which included the 49% purchase option MDU has now exercised under the purchase agreement. With this ownership purchase, the capacity under the PPA will be reduced to 27.5 MW upon closing.

"This investment enhances our diversified portfolio of assets, allowing MDU to meet customer demand with a mix of generation assets that includes coal as well as wind backed by natural gas peakers to effectively serve our customers' needs," said Nicole Kivisto, president and CEO of MDU Resources.

KeyFacts Energy: Wind Energy