Algonquin buys 60% stake in two US projects from Gamesa
Algonquin Power & Utilities Corp. says its renewable power generation subsidiary has completed acquisition of 60% interest in both the 200MW Minonk Wind Project in Illinois and 150MW Senate Wind Project in Texas from Gamesa.
Algonquin Power Company (APCo) also increased its interest 50MW Sandy Ridge Wind Project based in Pennsylvania to 60% from 58.75%.
APCo says the deals represent a $238m investment. The company will cover most of that amount as follows: $123m in proceeds from the recent $150m senior unsecured private placement bond offering that closed on 3 December, and $70m received from the recent preferred share offering that closed on 9 November.
Minonk, which achieved commercial operation this month, is comprised of 100 Gamesa G9X-2.0 MW wind turbines and has a 10-year power sales contract with JP Morgan Energy Ventures Corp.
The Senate facility, which also began commercial power generation this month, has 75 Gamesa G9X-2.0 MW wind turbines. JP Morgan Energy Ventures Corp. is buying all output over 15 years.
Algonquin has contracted Gamesa to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities at both wind farms for the next two decades.
Gamesa will retain a 40% interest in Minonk and Senate.
"Our investment in these facilities expands our wind portfolio in the US and provides further diversification of wind regimes, which enhances the stable and predictable nature of APUC's cash-flows and earnings," says Ian Robertson, chief executive of Algonquin Power and Utilities Corp. , based in Oakville, Ontario.
The deals follow a late November announcement by Algonquin that it had started talks with China’s Goldwind over the potential purchase of a 109MW Shady Oaks Wind Farm in the US state of Illinois.