Exelon buys John Deere Renewables
For Wind Power Expansion
Exelon Corp. is making an $860 million offer to buy the Wind Energy from equiptment manufacturer, John Deere. The trend seems to be that a greater number of stories will include green renewable energy. Whatever the implications, of such an aquisition, it involves the industry of energy and the modern renewable methods of producing it.
If we care about the earth with a forward looking eye to future, green energy is going to be trending a long time.
Exelon Corp., an electric utility company revealed that it would buy the John Deere and Company wind farm business Tuesday as reported by Reuters. The payment to Deere is about $860 million dollars for adding 735 operating megawatts (MW) of 'clean' energy to its current 1000 MW of renewable power production. John Deere Renewables division also had another 230 MW power capacity in development that Exelon would pay an additional $40 million. Bringing the total to a cool nine tenth's of a billion.
The farms 36 projects in eight states produce enough power to supply from 160,000 to 220,000 households. Deere is the world's largest producer of heavy machinery such as tractors, combines and harvesters. John Deere (NYSE:DE), finished the market Tuesday up .29 to 63.27, whereas the past year's low is 42.18 last September 4. That is an interesting 50 percent climb in one year.
At the end of 2009, the United States had about 35,000 MW of installed wind capacity, enough to power 9.7 million typical American homes, according to data from the American Wind Energy Association. If Exelon just basically doubled its power production in this renewable category from 1000 MW to 2000 MW then this market share represents almost six percent of the overall US wind power production. Shares of Exelon slipped 0.6 percent to $40.26 in early trade on the New York Stock Exchange, in line with the dip in the sector.