May 16 (Renewables Now) - Canadian renewable power producer Innergex Renewable Energy Inc (TSE:INE) announced on Monday it has expanded its hydropower portfolio by acquiring assets in Chile and British Columbia.
Innergex and local sector player Energia Llaima have been selected in a bidding process 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. The price for the purchase is USD 210 million (EUR 177.4m), net of USD 10 million in cash.
These two plants will be selling their output under power purchase agreements (PPAs) at fixed prices until 2020 and on the spot market. Innergex expects them to generate combined adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of about USD 21 million annually.
The Chilean transaction, which is pending regulatory clearance, marks the company’s entry into the Latin American country. It is now exclusively negotiating the final terms of a planned partnership under which it will acquire a 50% stake in Energia Llaima for a total commitment of USD 110 million, to be invested over the next three years.
“With this partnership, we intend to pursue a growth trajectory in this market and to expand our development platform throughout South America with a focus on high quality renewable energy projects,” said Michel Letellier, president and CEO of Innergex.
Also on Monday, Innergex said it had taken full control of three HPPs in British Columbia. More specifically, it has acquired the 33% stake held by Ledcor Power Group Ltd in Creek Power Inc, which in turn owns indirectly the 7.5-MW Fitzsimmons Creek, 25.3-MW Boulder Creek and 81.4-MW Upper Lillooet River hydro facilities. As a result of the transaction, Innergex now owns 100% of Creek Power, which also has a portfolio of prospective projects.
(USD 1.0 = EUR 0.845)