Algonquin Lands Major Wind Power Project
$888 Million Wind Deal Could Just Be The Beginning
Algonquin Power & Utilities Corporation has just announced that it has agreed to acquire a 480 MW portfolio of four wind power projects from Gamesa Corporación Tecnológica.
This deal, made through APUC’s renewable energy company Algonquin Power Company (APCo) and worth $888 million, is for four facilities in the United States. The facilities include Minonk (200MW) in Illinois, Senate (150MW) in Texas, Pocahontas Prairie (80MW) in Iowa and Sandy Ridge (50MW) in Pennsylvania. Two of the four have already reached their commercial operation dates while Senate and Minonk are on schedule to be operational later this year. The cumulative energy output from these four facilities is expected to exceed 1,644 GW-hrs per year.
These particular projects are outfitted with Gamesa’s G9X-2.0 wind turbines.
Ian Robertson, CEO of APUC said “we believe that working with Gamesa, a top global manufacturer or wind turbine generators, will maximize the strengths of both companies, provide opportunities for Algonquin to invest responsibly and profitably in wind power generation assets and to maximize returns to both Gamesa’s and Algonquin’s shareholders.”
This acquisition also doubles APUC’s power generation portfolio in addition to giving the company more exposure to the American wind energy market.
The projects are to be acquired through a brand new partnership between APCo and Gamesa called American Wind Portfolio Holdings, LLC (AWPH). APCo plans to provide $269 million to AWPH to fund the acquisition while tax assisted equity investors will provide the dividend, amounting to $306 million.
In addition to this deal, Gamesa and APCo have also agreed to a joint development deal to research potential wind power opportunities in the United States and Canada. The agreement states APCo will be allowed to view Gamesa’s pipeline of 2,700MW of wind power opportunities in the US and Canada while Gamesa will have the opportunity to build upon APCo’s already contracted development projects.