A joint venture partnership has been signed between the Navajo Nation and Boston company Citizens Energy Corp to develop 500MW of wind energy on its lands.

Citizens is a renewable energy and power transmission specialist and the Navajo Nation are represented by their wholesale energy company, Dine Power Authority. Under the terms of their agreement, the Navajos would have an ownership stake in the project with an option to make additional equity investments that could result in them taking a majority interest.

Early estimates suggest that the wind power project could produce between $60 to $100 million over the lifetime of the projects which could be as long as 25 years.

A decision is still pending on the actual location of the wind project with several sites on the reservation being considered. These including the Gray Mountain ridge southwest of Tuba City, Ariz., and Cameron, immediately west of Gray Mountain.

The project will be undertaken in a phased approach with the first phase of 200MW planned for completion by 2012. “We’re looking at another year and a half to two years before we actually get under way with construction,” said Deswood Tome, a spokesman for the Navajo Nation’s Washington, D.C., office.

Before any wind turbines can go up, however, the partners will need to complete an analysis on wind potential and secure financing for the project.