Algonquin Power and Utilities Corp. (TSX: AQN) said its renewable power generation subsidiary, Algonquin Power Co. (APCo), has entered into an agreement to acquire a 480 MW portfolio of four wind power projects in the United States from Gamesa Corporación Tecnológica, S.A.
The total purchase price for all four projects is approximately $888 million.
The wind portfolio consists of:
- The 200 MW Minonk project in Illinois;
- The 150 MW Senate project in Texas;
- The 80 MW Pocahontas Prairie project in Iowa; and
- The 50 MW Sandy Ridge project in Pennsylvania.
Pocahontas Prairie and Sandy Ridge reached their commercial operation dates in February 2012, and Senate and Minonk are in construction with an anticipated operational date of 2012.
The projects are comprised of 240 Gamesa G9X-2.0 MW wind turbines. All four projects each have entered into a 20-year contract with Gamesa to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities.
The projects will be acquired through American Wind Portfolio Holdings LLC., a newly formed partnership whose members include APCo, holding a 51 percent controlling interest, Gamesa, holding a 49 percent interest and certain tax equity investors.
In addition to the agreement for the acquisition of these projects, Gamesa and APCo have entered into a joint development agreement pursuant to which they will jointly pursue additional wind power development opportunities in the United States and Canada.
TD Securities Inc. acted as financial advisor to APUC with respect to the transaction.
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