Houston – ENGIE North America Inc. on April 16 announced the start of construction of the Jumbo Hill Wind Project, located in Andrews County, Texas. With a total capacity of approximately 160 MW, Jumbo Hill is scheduled to be online by spring of 2020.
Jumbo Hill will provide energy and renewable energy credits generated by the project to a corporate customer under a virtual Power Purchase Agreement (PPA), and has also entered into a Proxy Revenue Swap for a portion of its generation with Allianz Global Corporate & Specialty’s specialist weather risk team, in collaboration with its partners at Nephila Climate. REsurety Inc provided risk analytics supporting the Proxy Revenue Swap transaction and will serve as the calculation agent on an ongoing basis.
Jumbo Hill will use 57 GE Renewable Energy turbines, each with 127-meter rotors and a capacity of more than 2 MW, and the balance of the facility will be built by Wanzek Construction, Inc. The total capital investment of the project is over $150 million, and there will be up to 250 people employed at the site during the height of construction activity.
The project will also generate significant economic development in the local area: annual payments to landowners will total millions of dollars over the life of the project, combined with purchases of local goods and services, and nearly $30 million in payments to the various taxing entities. The project is expected to employ up to 12 people long-term. The Project is part of the portfolio acquired in 2018 by a subsidiary of ENGIE North America from Infinity Power Partners, a joint venture between Infinity Renewables and MAP® Energy.
“ENGIE is thrilled to be announcing our fifth wind project to start construction over the past year,” said Emily Cohen, who is ENGIE’s vice president of commercial strategy. “The construction of the Jumbo Hill Project will take ENGIE North America’s renewable generation built or under construction to more than 1.5 GW of capacity. It is a strong project in a unique location in West Texas, and we expect it to complement and help grow the evolving industries in the region.”
Recommended Reading
Segrist: The LNG Pause and a Big, Dumb Question
2024-04-25 - In trying to understand the White House’s decision to pause LNG export permits and wondering if it’s just a red herring, one big, dumb question must be asked.
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.