April 4 (Renewables Now) - Canadian renewables developer Greengate Power Corp has secured a CAD-100-million (USD 78.2m/EUR 63.7m) equity commitment from Fengate Real Asset Investments that will help it back the further development of its 1-GW wind and solar portfolio.
The companies unveiled the partnership in a joint statement on Tuesday, saying that they will seek to develop and acquire projects in the Canadian province of Alberta and will potentially expand their collaboration across North America. For Greengate in particular, the multi-year equity commitment from Fengate would make it possible to finance the development and eventual construction of its 1-GW late-stage wind and solar projects in the Canadian province and to enhance its presence in North America, the firm said.
Since 2007, Calgary-based Greengate has developed 480 MW of renewable energy projects in Alberta and Ontario.
Speaking on the transaction, Greengate’s president and CEO Dan Balaban said that "with solid financial backing from Fengate, a top-tier investor, Greengate is well-positioned to capitalize on its capabilities and satisfy the growing demand for renewable and clean sources of energy." Meanwhile, private equity firm Fengate sees the partnership as an investment offering stable, long-term cash flows.
CohnReznick Capital served as financial advisor to Greengate.
Alberta aims to phase out coal-fired power generation and add 5 GW of new renewable energy capacity by 2030. Last week, the province launched a tender for the procurement of 700 MW of renewables capacity, building upon the success of the initial tender in December 2017, when it selected 600 MW of wind projects.
(CAD 1.0 = USD 0.782/0.637)