MDU to invest $294m to take 49% stake in Badger Wind Farm.

MDU Resources Group’s subsidiary, Montana-Dakota Utilities (MDU), has agreed to acquire a 49% stake in Ørsted’s 250MW Badger Wind Farm in the US for $294m.

The acquisition will provide MDU with 122.5MW of the onshore wind project’s total generation capacity.

The Badger Wind Farm is located in Logan and McIntosh Counties, North Dakota. It is expected to generate enough clean energy to power approximately 110,000 households annually.

Currently under construction, the American wind farm was selected by MDU as the most cost-effective option to maintain reliable and affordable service for its customers.

The investment is part of MDU’s five-year capital expenditure plan. MDU initially secured a power purchase agreement (PPA) in November 2023 for 150MW of the Badger Wind Farm’s output, which included an option to acquire a 49% stake.

Once the transaction is completed, the capacity covered under the PPA will be decreased to 27.5MW.

MDU president and CEO Nicole Kivisto said: “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.”

The Badger Wind Farm is expected to significantly alter MDU’s nameplate generation mix. Upon completion, renewable energy will account for 39% of the company’s portfolio, up from 29%, while coal and gas will see a decline to 26% and 35%, respectively.

To ensure regulatory compliance and investment prudence, MDU has submitted an advance determination of prudence (ADP) request to the North Dakota Public Service Commission (NDPSC).

The filing seeks confirmation that the project is a reasonable and prudent addition to the company’s generation portfolio.

The Badger onshore wind project will provide economic benefits to Logan and McIntosh counties, contributing tens of millions of dollars in tax revenue over its 30-year lifespan.

The wind farm is also set to create 200–300 construction jobs, along with permanent roles for ongoing operations and maintenance.

Once operational, the project will be interconnected with the Midcontinent Independent System Operator (MISO) grid.

The transaction is subject to regulatory approval from the NDPSC.