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Canada

Canada

Gamesa announces $888m sale & tie-up with Algonquin

CANADA: Gamesa has agreed the sale of a 51% stake in four of its US wind farms, with a combined capacity of 480MW, to Canada's Algonquin Power & Utilities Corporation.

The $888 million deal will add about US$35 million to Gamesa’s EBIT and sets the stage for further joint wind energy ventures in North America between the two companies.

Also involved in the transaction are JP Morgan and Morgan Stanley, which are supporting the deal by investing tax equity of approximately $360 million.

The four wind farms that will now be majority owned by Algonquin are due for commissioning this year, with about 80MW fully commissioned thus far. They are:

  • Pocahontas Prairie in Iowa (80MW)
  • Sandy Ridge in Pennsylvania (50MW)
  • Senate in Texas (150MW)
  • Minonk in Illinois (200MW)

Gamesa currently retains a minority interest (49%), however, it reports it is "currently under negotiations" with further potential buyers.

Under the terms of the deal, Gamesa will supply 240 of its G9X-2.0MW turbines and will provide ongoing operation and maintenance support via a separate agreement.

Algonquin owns more than $1.2 billion in power generation and distribution assets across North America and has a 325MW development pipeline of contracted wind energy projects. In collaboration with Gamesa, Algonquin will seek to "expand and advance" this pipeline.

Commenting on the deal, Gamesa chair and chief executive, Jorge Calvet, said: "This transaction combines three of Gamesa’s major goals: partnering up with new leading customers in the North American renewable energy sector; attracting investments from tier one financial institutions; and … maximising the value of our wind farm portfolio."

 

 

 

 

 

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