MONTREAL, April 11, 2001 Boralex Inc. announces that it has signed an agreement with an affiliate of FPL Energy, LLC, a subsidiary of FPL Group and a major independent power producer in the United States, for the acquisition of a gross 36 MW wood-residue based power generating station located in Fort Fairfield, in Northern Maine.
This acquisition, representing an investment of US $10 million, will position Boralex as a leading producer of energy based on wood-residue in the state of Maine, and an important player in the production of this type of energy in the United States.
In commenting on this transaction, Jacques Gauthier, the President and Chief Operating Officer of the Corporation stated: "The addition of this station will consolidate our presence in New England and will give us an added advantage in serving the energy markets in the United States. Furthermore, this transaction is a perfect fit with our development strategy, which is based on acquiring stations with low operating costs thereby improving our competitive position." This transaction is subject to regulatory approval and should be finalized by July 1st, 2001.
The Fort Fairfield station is currently operated by a contingent of 28 employees and is ideally located for wood supply. This advantage will also benefit the other Boralex units located in Maine and New York. Its location will also stimulate the sale of energy in the local and New England (NEPOOL) markets as early as the summer of 2001. Considering the high prices of electricity during the summer period, the Corporation expects to be able to reach a level of profitability in line with its financial objectives from the last quarter of the current financial year.
With four wood-residue thermal or cogeneration power stations, three of which are in the United States and one in Quebec, Boralex has, throughout the years, developed an expertise in what is now known as green energy. Additional 34 MW thermal power station, currently under construction in Senneterre, Quebec, should begin operation by the end of 2001.
Boralex Inc. is an important independent producer of power. With the addition of the Fairfield station, the Corporation will have an installed capacity of 210 MW and will employ more than 150 employees. Boralex will own and operate 14 generating stations producing energy from different sources including wood-residue or natural gas fired thermal and cogeneration facilities and hydroelectric power stations. These power stations are located in Quebec, the US and France. Boralex's stock trades on the Toronto Stock Exchange under the ticker symbol BLX.A.
FPL Energy is a leading producer of clean energy, including natural gas, wind, solar, hydroelectric, biomass, and geothermal generating facilities in the United States and abroad. FPL Group, with annual revenues of more than $7 billion, is one of the nation's largest providers of electricity-related services. FPL Group's principal subsidiary is Florida Power & Light Company, one of the nation's largest electric utilities, serving 3.9 million customer accounts in Florida. Additional information is available on the Internet at www.fplenergy.com, www.flpgroup.com and www.flp.com