Algonquin Power to buy 200-MW wind farm from Geronimo

Sep 8, 2014 - Canadian firm Algonquin Power & Utilities Corp (TSE:AQN), or APUC, said Thursday it had agreed to acquire a 200-MW wind project in Minnesota from developer Geronimo Energy.

The Odell wind farm, valued at USD 313.5 million (EUR 242m), is currently being built on leased land in Cottonwood, Jackson, Martin, and Watonwan Counties. In order to partially fund the acquisition and completion of the project, APUC said that its largest shareholder Emera Inc (TSE:EMA), a utility in Canada, will buy USD 70 million worth of subscription receipts under a private offering. The receipts will convert into 7.9 million APUC common shares.

APUC offers water, electricity and natural gas utility services and also operates renewable energy facilities. The acquisition is part of its growth strategy and efforts to diversify its renewable energy portfolio, it explained.

The 200-MW wind complex will be powered by 100 Vestas turbines of 2 MW each, which are expected to produce 816.6 GWh of electricity annually. Utility Xcel Energy (NYSE:XEL) has agreed to buy its output under a 20-year power purchase agreement. Commercial operations at the plant are scheduled for the last quarter of 2015.

The Odell project will qualify for the US government's Production Tax Credit.

(USD 1.0 = EUR 0.772)

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