Travelers Capital Corp. has secured $56 million in non-recourse project financing for the construction of the 16-MW Box Canyon hydroelectric project near Port Mellon, British Columbia.
Box Canyon Hydro Corp., an affiliate of Elemental Energy Inc., is developing the project with Sound Energy Inc. on Box, Marty and Cascara creeks on the western shore of Howe Sound. It also partnered with the Squamish Nation on whose traditional territory the project is to be located.
Travelers acted as loan and security agent for the non-recourse project financing, which is funded by Industrial Alliance Insurance and Financial Services Inc. and Desjardins Financial Security Life Assurance Co.
Box Canyon was the final project awarded an electricity purchase agreement under BC Hydro’s Clean Power Call in 2010. It will sell 100 percent of its generation to the provincial utility under a 40-year agreement.
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