Today, Innergex Renewable Energy Inc and HQI US Holding LLC, a subsidiary of Hydro-Québec, announced they agreed to acquire a 60MW Curtis Palmer run-of-river hydroelectric portfolio. Specifically, these assets are in New York and currently belong to Atlantic Power. Indeed, this is the first acquisition for the companies under the Strategic Alliance formed in 2020.
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Accordingly, the US$310.0 million acquisition includes the 12MW Curtis Mills and 48MW Palmer Falls facilities located in Corinth.
More about the acquisition by Innergex and Hydro-Québec
Additionally, upon closing, Innergex and Hydro-Québec will indirectly own a 50% interest each in the company. Similarly, Innergex is also announcing a $175.0 million bought deal equity financing of common shares and a $43.5 million concurrent private placement of common shares to Hydro-Québec.
In this sense, Michel Letellier, President and Chief Executive Officer of Innergex, commented; “Indeed, we are thrilled to announce this first joint acquisition with Hydro-Québec under the Strategic Alliance. Particularly, the acquisition of Curtis Palmer represents an opportunity for Innergex to apply its 30 years of expertise in managing small run-of-river hydroelectric facilities; specifically while leveraging Hydro-Québec’s experience in New York to get a foothold in a new market.”
“We are also announcing today an equity financing that we will use to fund the purchase price of this acquisition,” continued Letellier. And also “further our expansion and diversification efforts. Therefore, we are very pleased with this support for Innergex and look forward to further grow in our Strategic Alliance with Hydro-Québec.”
The facilities
Similarly, Sophie Brochu, President, and CEO of Hydro-Québec, commented; “After having been commercial partners with the State of New York for more than 100 years, we are now entering a new phase; specifically, by investing directly in the State’s hydropower generation infrastructure alongside Innergex. Moreover, we will both bring our extensive expertise. Thus, this investment demonstrates our commitment to developing the share of renewables in the energy mix of North America.”
Indeed, the facilities have a power purchase agreement (PPA) for energy, RECs, and capacity with Niagara Mohawk Power Corporation; that expires upon the earlier of either December 31, 2027; or also the delivery of cumulative 10,000 GWh (which could happen in 2026).
Particularly, following the expiry of the PPA, Innergex and HQ expect that the facilities will sell energy, RECs, and capacity in the NYISO market. Lastly, the New York renewable energy market benefits from state programs; that support existing renewables and can offer additional upside potential; particularly to the Facilities, including the recent Tier 2 REC program. And also, the introduction of the social cost of carbon into energy markets.
