Innergex & Hydro-Québec complete first joint acquisition - Innergex and Hydro-Qubec each owns 50% of the 60 MW portfolio
- Increases Innergex's net capacity by 30 MW
- 5 employees to join Innergex's team
- Innergex and Hydro-Qubec enter the New York renewables market
LONGUEUIL, QC, Oct. 25, 2021 /CNW Telbec/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") and HQI US Holding LLC, a subsidiary of Hydro-Qubec ("Hydro-Qubec") are pleased to announce the completion of the previously disclosed 50-50 joint acquisition of the 60 MW Curtis Palmer hydroelectric portfolio ("Curtis Palmer" or the "Facilities") in the state of New York, for a total consideration of US$318.4 million ($393.4 million), including US$9.2 million ($11.4 million) of cash and working capital adjustments.
The Facilities consists of two run-of-river hydroelectric facilities, Curtis Mills (12 MW) and Palmer Falls (48 MW). Curtis Palmer has a power purchase agreement for energy, RECs and capacity with Niagara Mohawk Power Corporation. The 5 employees currently working at the Facilities are joining the Innergex team. This joint acquisition is the first under the Strategic Alliance formed by Innergex and Hydro-Qubec in 2020.
"As the first acquisition made under the Strategic Alliance with Hydro-Qubec, Curtis Palmer is proof of the excellent collaboration between our teams and the full potential of the Strategic Alliance in Innergex's growth strategy," said Michel Letellier, President and Chief Executive Officer of Innergex. "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."
"Together with Innergex, we have embraced the opportunity to acquire strategic assets that will generate attractive returns for Qubec, and we continue to further our alliance. By investing directly in hydropower generation in New York, we are strengthening our business relationship with the state and pursuing our efforts to promote renewable energy in North America," said Pierre Despars, Vice President – Corporate Strategy and Business Development for Hydro-Qubec.
The Facilities are expected to generate an average annual Adjusted EBITDA of US$42.5 million ($52.5 million).
On September 3, 2021, Innergex has completed a bought deal equity financing of common shares along with a private placement with Hydro-Qubec to fund the purchase price of the acquisition of Curtis Palmer.