Innergex Renewable Energy Inc., a Canadian independent renewable power producer, on July 26 said it has entered into an agreement with Finavera Wind Energy to acquire its Wildmare wind farm in British Columbia, Canada for approximately C$22 million ($21.8 million).
The amount to be paid is subject to adjustments, depending on certain milestones and events.
The asset purchase is seen to be completed this autumn, pending regulatory nods and other customary closing conditions. It is in line with Innergex’s plan to grow its pipeline of projects under development to ensure “a sustainable level of growth over the long-term”, the company’s president and CEO Michel Letellier said.
The Wildmare project is currently at the permitting stage. According to Innergex, it will require total investment of CAD 217 million, including the acquisition consideration. Two-thirds of that sum will come from project-level debt, while the rest will be financed through equity.
The wind farm is expected to reach commercial operation in 2015. Annual output is seen at 238,200 MWh, or as much as is needed to power some 24,000 local homes. Innergex said the wind farm would fetch total revenues of CAD 28 million in its first 12 months of work.
Wildmare is one of Finavera’s four wind farm developments in British Columbia, which in March 2010 secured 25-year power purchase agreements from the British Columbia Hydro and Power Authority (BC Hydro). The other projects include the 117-MW Meikle, 47-MW Tumbler Ridge and 60-MW Bullmoose wind farms. By the time the acquisition is completed, the buyer and Finavera will work to move the project through the environmental assessment process. They will also continue consultation with Finavera’s First Nation partners.