Canada-based Algonquin Power & Utilities Corp. (APUC) has announced an agreement to acquire a 200 MW wind project in Minnesota from Geronimo Energy.
The Odell project is located on approximately 23,000 acres of land in Cottonwood, Jackson, Martin and Watonwan counties. The project will feature 100 Vestas V110-2.0 turbines and has a 20-year power purchase agreement with a subsidiary of Xcel Energy. Construction costs are estimated to be approximately $313.5 million, and the wind farm is scheduled to be online in the fourth quarter of 2015. APUC also notes that the Odell project qualifies for federal production tax credits.
Concurrently, APUC announced that in connection with the Odell project, Emera Inc. has agreed to subscribe to a private placement of subscription receipts convertible into 7,865,170 APUC common shares, subject to regulatory approval, for total proceeds of approximately $70 million. APUC says proceeds of the subscription receipts will be used to partially fund the acquisition and completion of Odell.
‘There is significant demand for renewable energy in the U.S., and the investment in Odell is one of several near-term opportunities that we see for accretive growth. The project further strengthens and diversifies our renewable energy generation portfolio with a 20-year power purchase agreement and a strong wind regime in a new geographic region,’ says APUC CEO Ian Robertson. ‘We are also pleased with Emera's continued financial and strategic support of APUC through a private placement of subscription receipts that underpin our growth initiatives.’