Longueuil, Quebec’s Innergex Renewable Energy Inc. (TSX:INE) said February 14 that it is acquiring Vancouver-based run-of-river energy producer Cloudworks Energy Inc. for $185 million.
The deal includes $145.7 million in cash and approximately $39.3 million in common shares of Innergex.
Cloudworks is eligible for additional payments if its facilities produce more electricity than expected.
Cloudworks’ portfolio includes a 50.01% stake in six run-of-river hydroelectric facilities surrounding Harrison Lake that have a combined gross installed capacity of 150 megawatts.
It also owns 76 megawatts of capacity of run-of-river hydroelectric projects under development that have 40-year power purchase agreements with BC Hydro.
Cloudworks’ assets will increase Innergex’ installed power capacity by up to 23%, to 401 MW from 326 MW .
Innergex has previously partnered with Cloudworks for the development of its 50 MW Rutherford Creek hydroelectric facility.
Cloudworks’ projects have been a boon to residents near Harrison Lake, but an environmental group has said the province has a poor understanding of the cumulative impact of such hydro power plays.
Last November, the 300-member Douglas band near Harrison Lake held an electrification ceremony with BC Hydro and Cloudworks celebrating a new transmission line that is finally connecting the band to the grid and getting it off diesel power.
Cloudworks invested $4.5 million into a substation that BC Hydro is building for the band.