Author: Matt Berlin. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Canadian renewable power producer Innergex Renewable Energy Inc (TSE:INE) has a firm that owns and operates an 18-MW run-of-river hydroelectric station in Chile.
Innergex said on Tuesday it had acquired the entire share capital of Empresa Electrica Lican SA for a total enterprise value of USD 40.5 million (EUR 34m), with an equity investment for the company of USD 16.6 million. The equity investment is split between payments to the shareholders and the partial repayment of Lican’s existing debt and other costs.
Commissioned in 2011, the acquired plant is located on the Lican river, in Chile’s region of Los Rios.
"Lican is a high-quality asset with nine years of proven profitability selling its output on the merchant market. The facility features a small reservoir that will allow us to regulate the flow for a continuous energy supply,” said Innergex president and CEO Michel Letellier.
The plant is expected to produce a gross estimated long-term average of 77.8 GWh per year, and reach an adjusted EBITDA of USD 2.1 million on average for the first five full years, Innergex added.
Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.