in News Departments > New & Noteworthy
print the content item

Capstone Infrastructure Corp. has agreed to acquire Renewable Energy Developers (ReD) (formerly Sprott Power Corp.) for approximately C$70 million. The transaction, supported by each company's board of directors, is subject to shareholder approval.

According to Capstone, the acquisition results in a larger infrastructure company with power generation facilities across Canada, including 79 MW of installed capacity for wind.

The transaction enables Capstone to access 35 MW of wind projects with 20-year power purchase agreements (PPAs) under development in Nova Scotia, Ontario, Saskatchewan and Quebec, and the option to acquire an additional net 44 MW in wind power projects with PPAs in Ontario. These projects will require equity funding from Capstone in the amount of approximately C$60 million over the next two years, with the balance of the projects’ financing requirement to be satisfied with project level debt, Capstone notes.

Michael Bernstein, president and CEO at Capstone, explains the deal will further bolster Capstone’s ability to source, pursue and execute earlier-stage power opportunities.

"With ReD’s advanced-stage development projects, which are expected to enter into construction in 2013, and the surplus cash Capstone is building up over 2013 and 2014, we see this transaction as a solid strategic match that will contribute to cashflow growth for Capstone," Bernstein says.

Capstone’s portfolio includes investments in gas co-generation, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden and a 50% interest in a regulated water utility in the U.K.



Trachte Inc._id1770
Latest Top Stories

Despite 2013 Challenges, U.S. Wind Power Reaches All-Time Low Price

In a new report, the U.S. Department of Energy details the highs and lows of the country's wind industry last year, and the agency maintains that the U.S. sector remains strong.


Mexico On Pace To Set New Renewables Investment Record

A new report says the country has spent $1.3 billion on clean energy in the first half of 2014 and could end up seeing a record year. Furthermore, wind power is slated for significant growth in the region.


IRS Issues More PTC Guidance, Easing Some Wind Industry Concerns

The Internal Revenue Service (IRS) addresses how much work is needed on a wind farm to satisfy production tax credit (PTC) eligibility.


Embryonic No More: U.S. Offshore Wind Industry Gaining Momentum

After a decade of fits and starts, the industry is moving closer to installing the first generation of wind projects off the country's shores.


AWEA: U.S. Installs 853 MW Of Wind In First Half Of 2014

The American Wind Energy Association (AWEA) reveals the U.S. industry's progress thus far this year and underscores the importance of policy certainty.

Canwea_id1984
Renewable NRG_id1934
Tower Conference_id1965