An initial PPA deal will take effect this year but the main agreements cover the purchase of 250MW of power over 15 years starting in about 2020.

Minnesota Power said that the long-term deal would require construction of hydropower plants in northern Manitoba and major new transmission links facilities between Canada and the US.

In a statement, Don Shippar, chief executive of Allete, the parent of Minnesota Power, said: ‘We are pleased to co-operate with our neighbour and long-term utility partner to secure this clean, carbon-free energy resource for our customers.’