Atlantic Power buying into 85-MW biomass portfolio in US

Atlantic Power Corp (NYSE:AT) has agreed to purchase AltaGas Power Holdings US Inc’s interests in 85 MW of biomass plants for USD 20 million (EUR 17.8m) in total, it said on Wednesday.

More specifically, Atlantic Power will buy AltaGas’ 50% interest in the 48-MW Craven County Wood Energy plant in North Carolina, while CMS Energy will own the remaining 50%. The facility has been operational since 1990 and has in place a power purchase agreement (PPA) with Duke Energy Carolinas running through December 2027.

Additionally, Atlantic Power will get AltaGas’ 30% stake in the 37-MW Grayling Generating Station in Michigan, which was brought live in 1992. Fortistar and CMS Energy own 20% and 50% in the plant, respectively, while Consumers Energy, a unit of CMS Energy, is the off-taker. The facility’s PPA expires in December 2027.

Both plants are operated by an affiliate of CMS Energy and have no project-level debt.

The acquisition is subject to clearance from the Federal Energy Regulatory Commission (FERC) and customary third-party approvals. Its completion is expected to occur by the middle of this year. Atlantic Power said it will finance the deal using discretionary cash.

(USD 1.0 = EUR 0.892)

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