Innergex Renewable Energy and a subsidiary of Hydro Quebec for the US, HQI US Holding LLC, announced this Monday they have closed a 50-50 joint acquisition. The transaction was for a hydroelectric portfolio in the state of New York.
Firstly, the portfolio is a 60-megawatts hydroelectric project called Curtis Palmer. The transaction was for a total consideration of US$318.4 million, including US$9.2 million of cash and working capital adjustments.
Moreover, the Curtis Palmer hydroelectric portfolio consists of two run-of-river hydroelectric facilities; the Curtis Mills, with 12 MW of total capacity, and the Curtis Palmer Falls, with 48 MW.
In addition, the companies said in the statement that Curtis Palmer already has a power purchase agreement for energy; RECs, and capacity with Niagara Mohawk Power Corporation. Also, the five employees currently working there will join the Innergex team.
On the other hand, back in 2020, the companies signed a Strategic Alliance. The acquisition of these facilities is, in fact, the first transaction out of such an Alliance.
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Innergex and Hydro Quebec execute first acquisition after Alliance
About the matter, Michel Letellier, CEO of Innergex, said. “As the first acquisition made under the Strategic Alliance with Hydro-Québec, Curtis Palmer is proof of the excellent collaboration between our teams.”
He also remarked. “Together, we will continue to join our forces and expertise and work on our shared purpose of increasing our presence in the energy transition and creating value with high-quality assets.”
Furthermore, Pierre Despars, Vice President for Hydro Quebec, said. “Together with Innergex, we have embraced the opportunity to acquire strategic assets that will generate attractive returns for Québec, and we continue to further our alliance.”
He also highlighted that, by acquiring assets in New York, “we are strengthening our business relationship with the state and pursuing our efforts to promote renewable energy in North America.” Finally, the facilities will generate an average annual Adjusted EBITDA of US$42.5 million.
