July 4 (Renewables Now) - Canadian renewable power producer Innergex Renewable Energy Inc (TSE:INE) said today it has finalised a joint venture partnership through which it is acquiring a 50% stake in Chilean sector player Energia Llaima.
Innergex has invested an initial amount of USD 10 million (EUR 8.6m) and has agreed to pour a further USD 100 million into the target over a 12-month period, according to a news release.
Energia Llaima owns a major interest in the 12-MW Energia Coyanco hydro project and in the 34-MW Pampa Elvira solar thermal plant. The company’s development portfolio includes the 109-MW Central Frontera and 16-MW Central El Canelo hydro projects in advanced stage of development, as well as other early-stage schemes.
Together, Innergex and Energia Llaima were selected earlier this year to buy the 140-MW Duqueco hydro project, which is comprised of the 85-MW Peuchen and 55-MW Mampil hydropower plants (HPPs) on the Duqueco river to the east of Los Angeles city, Chile. A USD-90-million portion of Innergex’s agreed investment in the Chilean company will be spent on the purchase of the Duqueco project.
Innergex estimates that the Energia Coyanco and Pampa Elvira assets should generate projected adjusted earnings, before interest, tax, depreciation and amortisation (EBITDA) of about USD 6.5 million annually.
(USD 1.0 = EUR 0.859)