First Wind Holdings LLC, Algonquin Power and Utilities Corp., and Emera Inc. have entered into an agreement to jointly construct, own and operate wind projects in the northeast U.S.
First Wind's 370 MW portfolio of wind projects in the Northeast includes five operating projects and two projects near operation. These assets will become part of an operating company, of which First Wind will own 51%. Emera and Algonquin are entering into a separate joint venture (Northeast Wind), which will own 49% of the operating company.
Emera will initially own 75% of Northeast Wind, and Algonquin will own the balance. Northeast Wind will invest a total of $333 million to acquire the 49% ownership of the operating company. This includes a $150 million loan to the operating company. The loan will be repaid within five years or convert to equity in future projects.
First Wind says it will work with Algonquin and Emera to grow the operating company. In addition to its ownership interest in the operating company, First Wind will serve as its managing partner and will continue to operate the projects. First Wind will continue to develop Northeast Wind projects, and once these projects meet certain eligibility criteria, they will transfer to the operating company.