TransCanada Corp. has signed a final agreement to sell its 62% share of the Cartier wind power facilities – and related operating entities – to Innergex Renewable Energy Inc. for approximately C$630 million.
Innergex is acquiring TransCanada’s interest in the five Cartier wind farms, located in the Gaspé peninsula in Quebec – Baie-des-Sables, Carleton, Gros-Morne, L’Anse-à-Valleau and Montagne Sèche – and its 50% interest in the operating entities of the wind farms. Innergex currently owns the remaining interests in both the wind farms and operating entities.
The five wind farms have a total generating capacity of 590 MW, of which TransCanada’s share is 365 MW. All of the electricity produced by these wind farms is sold under existing power purchase agreements with Hydro-Québec.
As the sole owner and operator, Innergex will take over management and operation of the wind farms. The operating entities consist of a team of 42 operations and maintenance staff and four administrative employees; they will join Innergex’s team.
“This transaction allows us to capture the high value the market places on contracted renewable energy assets and redeploy the proceeds into our near-term growth projects,” explains Russ Girling, TransCanada’s president and CEO. “We are well-positioned to fund our near-term capital program through our growing, internally generated cash flow, along with a broad spectrum of financing levers, including access to capital markets and further portfolio management activities.”
The sale is expected to close in the fourth quarter of 2018, upon satisfaction of closing conditions. Innergex expects the acquired interest in the wind farms to generate revenues of approximately C$82.9 million and projected adjusted EBITDA of approximately C$68.4 million annually.
“By acquiring TransCanada’s interest in the Cartier wind farms and Cartier operating entities, not only do we add 366 MW of net installed capacity to our portfolio, but we look forward to welcoming a team with unique expertise to advance our future growth projects,” says Michel Letellier, president and CEO of Innergex.
