MDU Resources secures 49% stake in Badger Wind Farm, boosting renewable energy share

MDU Resources Group, Inc. is set to expand its renewable energy portfolio with a $294 million investment in Badger Wind Farm, securing a 49% ownership stake in the project through its subsidiary, Montana-Dakota Utilities Co. This strategic move will add 122.5 megawatts (MW) of clean energy capacity, reinforcing the company’s commitment to sustainable power generation. The acquisition remains subject to regulatory approval from the North Dakota Public Service Commission (NDPSC) but aligns with MDU Resources’ long-term energy strategy.

How Will the Badger Wind Farm Investment Strengthen MDU Resources’ Energy Portfolio?

MDU Resources has positioned this wind farm acquisition as a cost-effective and strategic energy expansion in response to rising electricity demand. The company’s 2024 Integrated Resource Plan (IRP) identified the necessity for generation capacity expansion, selecting wind energy as the most viable solution to maintain grid reliability while supporting clean energy transition. Located near Wishek, North Dakota, Badger Wind Farm is a 250 MW project developed by Ørsted, a global leader in renewable energy growth. With this investment, MDU Resources will directly own nearly half of the facility, ensuring a reliable supply of low-cost, wind-generated electricity. The project is expected to power approximately 110,000 homes annually, bolstering the region’s clean energy infrastructure.

Why Is MDU Resources Investing in Wind Energy?

MDU Resources’ decision to invest in wind energy development aligns with its broader five-year capital expenditure strategy, which prioritizes diversified energy solutions. The acquisition enhances its ability to provide affordable, sustainable electricity, supporting both economic and environmental objectives. The investment is also a natural extension of MDU Resources’ previous power purchase agreement (PPA) for 150 MW of Badger Wind Farm’s output, which was finalized in November 2024. By exercising its 49% ownership option, MDU Resources will reduce its PPA commitment to 27.5 MW, shifting more control over energy production to the company while maintaining long-term cost stability. MDU Resources President and CEO Nicole Kivisto emphasized the strategic importance of the investment, noting that a balanced energy mix is critical for meeting customer demand and ensuring grid resilience. She stated that the company’s portfolio will continue to include coal-fired plants, with natural gas peaking units supporting intermittent renewable sources like wind power.

How Will the Badger Wind Farm Investment Impact Local Communities?

Beyond contributing to renewable energy expansion, the Badger Wind Farm is expected to deliver significant economic benefits to North Dakota’s Logan and McIntosh Counties. The project will generate substantial tax revenue, supporting essential public services such as schools and emergency response departments. Over its projected 30-year lifespan, the wind farm will provide a steady financial boost to local governments without increasing costs for residents. Additionally, the project is creating hundreds of job opportunities during its construction phase, with workforce demand peaking between 200 and 300 positions. Once operational, the facility will maintain a dedicated team for ongoing maintenance and monitoring, ensuring long-term employment stability in the region.

How Will This Investment Shift MDU Resources’ Energy Mix?

MDU Resources’ acquisition of a wind energy facility marks a pivotal shift in its energy generation mix, increasing its share of renewable energy sources. Following the completion of the transaction, wind and solar power will account for 39% of MDU’s total generation capacity, up from the previous 29%. The company is actively reducing its reliance on coal-fired power plants, which will decline from 31% to 26%, reflecting a broader industry trend toward low-emission energy solutions. To ensure regulatory compliance and demonstrate the financial prudence of this investment, MDU Resources has submitted an Advance Determination of Prudence (ADP) request to the NDPSC. The filing seeks approval that this acquisition is a reasonable, cost-effective measure for delivering affordable electricity to consumers.

What Does This Mean for MDU Resources’ Customers and Investors?

For MDU Resources’ 1.2 million customers across eight states, this investment represents a commitment to energy affordability, ensuring access to stable electricity rates while transitioning toward sustainable power solutions. The integration of wind power into the company’s infrastructure enhances grid reliability, reducing exposure to volatile fossil fuel prices while supporting clean energy adoption. For investors, the acquisition aligns with MDU Resources’ long-term financial strategy, which balances infrastructure investment with profitability and regulatory stability. As part of the S&P SmallCap 600 index, MDU Resources continues to expand its regulated energy business, leveraging renewable energy investments to strengthen its competitive positioning in the market. With regulatory approval pending, the Badger Wind Farm acquisition marks a critical milestone in MDU Resources’ transition to a more sustainable, diversified energy portfolio, reinforcing its role as a leader in North Dakota’s renewable energy landscape.