September 21 (Renewables Now) - Atlantic Power Corp (NYSE:AT) said on Thursday it has executed an agreement to acquire for USD 13 million (EUR 11m) 40 MW of biomass plants from EDF Renewables Inc.
The two 20-MW plants are located in South Carolina and have been operational since 2013. They use primarily mill and harvesting residues as feedstock and sell their output to state-owned utility Santee Cooper under power purchase agreements (PPAs) that will run to 2043.
With the transaction not subject to regulatory approval, closing is expected to happen in the third or fourth quarter of 2019, following a restructuring of the plants' ownership structure after the end of relevant tax credit recapture periods.
The acquisition will be funded from Atlantic Power's discretionary cash.
EDF Renewables is a unit of French utility Electricite de France (EPA:EDF).
(USD 1 = EUR 0.85)