FirstLight Power has finalised its agreement to acquire Canadian renewable operator and developer Hydromega Services Inc. The acquisition includes ownership interest in ten hydroelectric assets and a substantial clean energy development pipeline, bolstering FirstLight's presence in North America.

The deal encompasses the ownership of five hydropower generating stations in Québec and an additional five in Northeastern Ontario. Furthermore, it brings into FirstLight's fold Hydromega's development pipeline, which boasts over 2GW of wind, solar, storage, and hydroelectric projects. This strategic move effectively doubles FirstLight's development pipeline to approximately 4GW in the US and Canada. The transaction is expected to conclude in the fourth quarter of 2023, subject to customary closing conditions.

With the recent integration of H2O Power, this acquisition further solidifies FirstLight's position with a combined operating capacity of over 200MW in Québec and Ontario. These assets provide a dependable source of clean energy to both provinces and have the added benefit of ownership participation by four First Nations, ensuring long-term benefits for indigenous communities.

This acquisition also marks FirstLight's expansion into the Canadian market, enabling the company to accelerate its growth across North America. The deal includes over 1000 MW of wind development projects in Québec and over ,000 MW of battery storage development projects in Ontario. FirstLight will also welcome Hydromega's employees into its expanding team.

“The strategic acquisition of the Hydroméga platform continues an exciting and transformational period for FirstLight,” said Alicia Barton, President and CEO of FirstLight. “By adding Hydroméga’s development capabilities and operational assets to FirstLight’s existing diversified renewables and energy storage portfolio, we will position ourselves for even greater growth in the years ahead as we pursue our mission to accelerate the decarbonization of the electric grid by building, operating, and integrating renewable energy and storage to meet the world's growing clean energy needs. We look forward to working with the talented team at Hydroméga and their First Nations and local government partners to deliver clean, reliable power to the communities of Québec, Ontario and beyond.”

Hydromega Services Inc brings over 36 years of experience in originating, developing, implementing, and operating clean electricity production facilities in Québec and 20 years in Ontario. The company played a pivotal role in the early days of the renewable energy sector in Canada, having originated over 1000MW, representing more than 25%  of the installed wind power capacity in Québec.

“As an early leader in Canada’s renewable energy sector, we are proud to join forces with FirstLight to accelerate the development of our diversified clean energy portfolio to fight climate change and increase access to renewable power in our current target markets, Québec, Ontario and beyond,” said Stéphane Boyer, CEO of Hydroméga. “As a leading independent clean power provider, we have always strived to build partnerships with local communities and organizations committed to the development of their region’s renewable power potential, and we are proud of the meaningful partnerships that have been established with local governments for over two decades. Given its track record of managing clean energy assets and natural resources in harmony with the environment, it is clear that FirstLight shares our values, so joining forces with them makes sense on many levels.”

Jacky Cerceau, President and co-owner of Hydromega, echoed Boyer's sentiments: "FirstLight understands and has a deep respect for Hydromega's Québec and Canadian heritage, which has been a key component of Hydromega's historic success and will remain an important factor in the future."

Philip Lawee, co-owner of Hydromega, added, "FirstLight will provide Hydroméga with the ability to accelerate its growth and continue its expansion across Canada and North America. Jacky and I are confident that Hydroméga's new partners will elevate the company to a new level and achieve great success."

This acquisition comes as part of FirstLight's broader growth initiatives, which include entering the offshore wind market and expanding its presence in various US regions. The company aims to support the transition to a fully decarbonized electric grid in North America.

TD Securities is acting as the financial advisor to Hydromega in this transaction, with Davies Ward Phillips & Vineberg LLP as legal counsel and KPMG representing Hydromega as its tax advisor. Blakes, Cassels & Graydon LLP is serving as FirstLight's legal counsel.