LS Power, a development, investment and operating company focused on the North American power and energy infrastructure sector, has agreed a deal with Hull Street Energy to buy 42 run-of-river hydro facilities across 11 states with a total capacity of 334MW.

“With the addition of this large, geographically diverse, run-of-river hydroelectric portfolio, combined with our existing energy transition platforms, LS Power continues to lead the effort to develop a cleaner, more reliable, and more affordable energy ecosystem,” said LS Power CEO Paul Segal. “Reducing carbon intensity is an enduring secular trend that has long informed our energy transition strategy, which combines our renewable generation and fuels, battery energy storage, distributed energy, transmission, and transportation electrification platforms with a flexible, complementary natural gas fleet.”

“The hydro projects we are acquiring are located in states and markets with attractive regulatory environments supportive of energy transition investments, which we anticipate will grow over time,” added LS Power Generation President Nathan Hanson. “Policies in New York and Massachusetts already promote the use of small hydro projects to meet renewable portfolio standards, and we expect additional states will follow as energy transition tailwinds continue to grow.

“Hydroelectric generation is a long-lived, carbon free asset class that can operate essentially in perpetuity with the appropriate maintenance and care. These projects will be integral to achieving carbon reduction goals, and we are excited to add them to our portfolio.”

LS Power was represented by Milbank LLP as legal counsel with BMO Capital Markets Corp. and Scotiabank serving as financial advisors. The acquisition is expected to close by the end of Q1 2023, subject to the satisfaction of certain closing conditions and regulatory approvals.