Nevada-based Blue Earth Inc. has signed a letter of agreement for the exclusive rights to acquire six renewable energy projects totaling 273 MW in Mexico.
The company did not disclose the seller's name and has provided few details. However, Blue Earth notes that the portfolio includes two utility-scale wind projects totaling 168 MW and four utility-scale solar projects totaling 105 MW. The projects are in various stages of development, the company adds.
Blue Earth has approximately two months, unless extended, to perform due diligence on all aspects of the projects. All significant purchase terms have been agreed upon.
If the transaction closes, following the due-diligence period, Blue Earth says it will issue shares of stock for the acquisition of the projects and enter into a project development agreement for $2.5 million in cash with the current owner and developer of the projects to perform certain development services to reach notice to proceed, which means pre-construction tasks are completed.
‘We are very excited about the possibility of moving forward on these utility scale projects and expanding into the Mexican market, which has implemented regulatory measures that will facilitate and subsequently increase renewable power generation in the country,’ states Ruben Fontes, president of Blue Earth Solar Inc.