Innergex Renewable Energy Inc and HQI US Holding LLC, a subsidiary of Hydro-Québec, have agreed to acquire the 60MW Curtis Palmer run-of-river hydroelectric portfolio in New York from Atlantic Power – the first acquisition for the companies under the Strategic Alliance formed in 2020.
The US$310.0 million acquisition includes the 12MW Curtis Mills and 48MW Palmer Falls facilities located in Corinth. Upon closing, Innergex and Hydro-Québec will indirectly own a 50% interest each in the company. 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 Facilities have a power purchase agreement (PPA) for energy, RECs and capacity with Niagara Mohawk Power Corporation that expires upon the earlier of either December 31, 2027 or the delivery of cumulative 10,000 GWh (which is expected in 2026). Following the expiry of the PPA, it is expected that the facilities will sell energy, RECs and capacity in the NYISO market. The New York renewable energy market benefits from state programs that support existing renewables and can offer additional upside potential to the Facilities, including the recent Tier 2 REC program, and the introduction of the social cost of carbon into energy markets.