John Deere Backs Out of Wind Energy Business
Deere & Co., (NYSE: DE) the parent company of John Deere, said last week it would be selling off its energy division.
Deere said it will sell its wind power division, called John Deere Renewables, including all of its farms in eight states, to energy giant Exelon Corp (NYSE: EXC) for $900 million. The deal calls for $860 million now, plus an additional $40 million once all of Deere’s projects currently under construction are completed. The purchase of the wind farms will be bring an immediate source of revenue to Exelon as 75 percent of the electricity generated by the wind farms are already contracted out via power purchase agreements.
Exelon’s acquisition of John Deere’s wind power projects is the utility’s first foray into wind farm ownership.
Exelon, known more for its focus on nuclear power, currently owns more nuclear generating capacity than any other company in the U.S. The company’s 10 plants and 17 reactors represent a full 20 percent of the country’s entire nuclear fleet.
Article by Timothy B. Hurst, appearing courtesy Earth and Industry.
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