Investor InfraRed has acquired stakes in a 700MW-plus portfolio of operating wind farms in the US and Canada from Algonquin for $384m.
The deal includes 49% ownership interests in three operating wind facilities in the United States totalling 551MW of installed capacity.
The projects consist of the Odell Wind Facility in Minnesota, the Deerfield Wind Facility in Michigan and the Sugar Creek Wind Facility in Illinois.
The agreement also comprises an 80% ownership interest in a 175MW operating wind facility in Canada.
The Canadian facility is the Blue Hill Wind Facility in Saskatchewan. AQN will continue to oversee day-to-day operations and provide management services to the facilities.
Total cash proceeds are expected to be approximately US$277 million for the U.S. Facilities and approximately C$107 million for the Blue Hill Wind Facility, subject to customary closing adjustments.
“This announcement represents a meaningful step in achieving the objective set out at our 2021 Investor Day to partner with highly reputable institutional partners as we execute on our five-year capital program and our renewable energy growth agenda,” said Arun Banskota, President and Chief Executive Officer of AQN.
“We are excited to be partnering with InfraRed, a global leader in the infrastructure and renewable energy market. We see strong alignment between InfraRed’s long-term investment strategy and cost of capital, and our renewable energy experience and focus on safety, reliability and accretive growth.”