E.ON expands in US market

The German utility is plugging $500m into a facility that is set to become Illinois' second-largest wind farm.

German energy group E.ON is stepping up its involvement in the US clean energy market through a number of new deals, including $500 million committed to a wind farm in Illinois.

E.ON said it has recently begun construction on the 278MW Radford’s Run wind farm in the midwestern state. The project will be the second-largest wind facility in Illinois and E.ON’s third project there. It is expected to be operational by the end of 2017.

The company also said it has struck a 12-year power purchase agreement with Johnson & Johnson to buy half of the output from E.ON’s 200MW Colbeck’s Corner wind farm in the Texas panhandle – a share equal to around 60 percent of Johnson & Johnson’s electricity consumption in the US and 25 percent globally. For that same project, it has also sold 400MWh of production to Digital Realty, a data centre operator.

These power purchase agreements are the latest contracts sealed by an increasingly long line of US businesses that are starting to power their activity from renewable energy.

E.ON has been selected by Lincoln Clean Energy, a subsidiary of I Squared Capital, to provide maintenance to its 253MW Amazon Wind Farm Texas, which is selling 90 percent of its power to Amazon Web Services.