Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) and HQI US Holding LLC, a subsidiary of Hydro-Québec (“Hydro-Québec”) have entered into a Membership Interest Purchase Agreement with Atlantic Power to acquire Curtis Palmer, a 60 MW run-of-river hydroelectric portfolio located in Corinth, New York, consisting of the 12 MW Curtis Mills and 48 MW Palmer Falls facilities (“Curtis Palmer” or the “Facilities”) for upfront cash consideration of US$310.0 million ($387.5 million) and an earn-out provision subject to the evolution of NYISO market pricing. This joint acquisition is the first under the Strategic Alliance formed by Innergex and Hydro-Québec in 2020. Upon closing, Innergex will own indirectly a 50% interest in the Facilities with Hydro-Québec indirectly owning the remaining 50% interest. Innergex is also announcing a $175.0 million bought deal equity financing of common shares and $43.5 million concurrent private placement of common shares to Hydro-Québec.
“We are thrilled to announce this first joint acquisition with Hydro-Québec under the Strategic Alliance. The acquisition of Curtis Palmer represents an opportunity for Innergex to apply its 30 years of expertise in managing small run-of-river hydroelectric facilities, while leveraging Hydro-Québec’s experience in New York to get a foothold in a new market,” said Michel Letellier, President and Chief Executive Officer of Innergex. “We are also announcing today an equity financing that will be used to fund the purchase price of this acquisition and further our expansion and diversification efforts. We are very pleased with this support for Innergex and look forward to further grow in our Strategic Alliance with Hydro-Québec.”
“After having been commercial partners with the State of New York for more than 100 years, we are now entering a new phase by investing directly in the State’s hydropower generation infrastructure alongside Innergex, to which we will both bring our extensive expertise. This investment clearly demonstrates our commitment to developing the share of renewables in the energy mix of North America,” commented Sophie Brochu, President and CEO of Hydro-Québec.
“The Curtis Palmer facility is one of the highest quality assets in the Atlantic Power portfolio and an important hydro facility in the New York market,” said James J. Moore, Jr., Chief Executive Officer of Atlantic Power. “We are honored to have been stewards of it and now see it transferred to experienced operators like Innergex and Hydro-Québec.”
