Alterra seeks Texas project loan

Canada’s Alterra Power expects to close a loan in the third quarter for up to C$110m ($103.27m) that it would partly utilize “to support” an equity investment in the 204MW Shannon wind project in north Texas.

The Vancouver-based company did not identify the lender.

Alterra in February announced it had acquired the project from Horn Wind, a Texas-based early-stage wind developer. Shannon is qualified for the federal production tax credit.

The company now says that it is in the final documentation stage for all major project contracts and expects to close construction financing later this year with two lenders.

The project is on schedule to achieve full commercial operation in the summer of 2015. Alterra will sell a majority of its electricity under a long-term hedging agreement with a financial institution.

In a statement today, Alterra says it will eventually retain 50% project ownership under a partnership agreement under negotiation with a large energy infrastructure fund. It did not provide additional details.