Boralex has acquired a majority of the equity interest in the proposed Frampton community wind power project, owned by Northland Power.
After the transaction closes, Boralex will own 66.7% with the municipality of Frampton at 33.3%. The deal is subject to certain closing conditions.
Construction of the Frampton project, located in the Chaudiere-Appalaches region in Quebec, will begin in the first quarter of this year. Once constructed, Frampton will consist of 12 Enercon E 82 wind turbines. The company was awarded a contract under the Hydro-Quebec Distribution request for proposals for 250 MW of wind power in 2009.
Boralex says the project will require an investment in the range of $75 million to $80 million. The quality of the wind resource at the site suggests an average caapcity factor of approximately 40%, which should allow the project to generate earnings before interest, taxes, depreciation and amortization of approximately $9 million annually, according to the company.