Innergex Renewable Energy will acquire the 60MW Sault Ste Marie solar portfolio in north-western Ontario from Fengate Asset Management for a purchase price of $50.2m, along with the assumption of $169.5m of existing debt.
The Sault Ste Marie 1, 2, and 3 facilities reached full commissioning between 2010 and 2011 and have achieved an excellent operating track record since then, with a historical five-year weighted-average availability of 98.5%.
All three sites are fully contracted under long-term Renewable Energy Standard Offer Program power purchase agreements with the Independent Electricity System Operator (Aa3 rating by Moody’s).
SSM1 has gross installed capacity of 20MW. Commissioned in October 2010, it has another eight years on its PPA.
Both the 30MW SSM2 and 10MW SSM3 were commissioned in 2011, and have another nine years on their PPAs.
The assets are expected to generate annual revenues of approximately $33.1m in 2023, while operating, general and administrative expenses are expected to reach approximately $3.1m during the same period.
The acquisition is expected to close in the first quarter of 2023 and is subject to certain regulatory approvals in Canada, key third party consents and other customary closing conditions.
“This is our first acquisition in Canada since 2018, and we are excited to add this collection of high-performing fully contracted solar assets to our portfolio for additional and reliable Canadian dollar cash flows,” said Michel Letellier, President and CEO of Innergex.
“The portfolio adds to our geographical diversification and improves our asset mix by adding 60MW of solar capacity to our existing fleet.”