Quebec-based Boralex Inc. (TSX: BLX) is set to acquire a 22MW run-of-the-river hydroelectric project owned by Sequoia Energy Inc. near Gold Bridge, B.C.
Boralex is a power producer whose core business is developing and operating renewable energy power stations. The company operates an asset base with an installed capacity of more than 500MW in Canada, the northeastern United States and France.
The acquisition will require investments of $60 million and will generate approximately 70 GWh annually. All of the main permits have been secured and construction work is set to begin shortly.
The hydroelectric station is slated for commercial commissioning in late 2013.
The project is covered by a 40-year electricity purchase agreement with BC Hydro and has a 20-year renewal option.
Boralex President and CEO Patrick Lemaire said, “We are very pleased to announce this new hydroelectric project to further drive development in B.C. A permanent Boralex team will be set up in the province to help ramp up growth.”
Boralex and Sequoia will co-operate throughout construction and until commercial operation to ensure that all stakeholder and First Nations expectations are achieved.
Ron Diduch, president and CEO of Sequoia, said, “We value the relationships we have developed in B.C. and are excited to be working with Boralex, who has a strong track record in developing and maintaining sound relationships.”
Boralex expects the transaction to close in fall 2012 and that the financing for the project will be in place before the end of the year.
