AltaGas Income Trust (TSX: ALA.UN) has significantly added to its renewable energy initiatives with the addition of both hydroelectric and wind power development projects.
Two acquisitions will add approximately 325 megawatts (MW) of run-of-river hydroelectric development projects and approximately 600 MW of wind development projects to AltaGas’ current renewable energy portfolio. The acquisitions bring AltaGas’ total renewable energy capacity under construction and development to approximately 1,900 MW.
AltaGas entered into an agreement to acquire NovaGreenPower Inc.
(NovaGreen), a wholly-owned subsidiary of NovaGold Resources Inc.
(NovaGold), for $35 million on closing. The acquisition is expected to
close later today. AltaGas will pay an additional $5 million to
NovaGold on completion of certain conditions subsequent.
NovaGreen
is developing the Forrest Kerr run-of-river hydroelectric project,
which is expected to have a capacity of 195 MW, in Northwest B.C.
NovaGreen is also pursuing three other development projects all within
the same region as Forrest Kerr with a total potential run-of-river
hydroelectric capacity of approximately 130 MW.
Power from the project is expected to be delivered through an extension and tie-in to the BCTC grid.
"These acquisitions demonstrate our commitment to prudently grow and diversify our power infrastructure business through the development of significant renewable energy projects in Western Canada and the Western U.S.," said David Cornhill, Chairman and CEO of AltaGas.
In a separate transaction, AltaGas has agreed with GreenWing Energy Management Ltd. (GreenWing) to acquire GreenWing’s 45% interest in GreenWing Energy Development Limited Partnership (GEDLP) for $12.3 million. As a result, the Trust will own 100$ of GEDLP. This acquisition is expected to close on August 15, 2008.
The acquisition of the remainder of GEDLP results in AltaGas holding 640 MW of mature wind development projects and approximately 800 MW of early development wind projects in Western Canada and the Western U.S. AltaGas’ portfolio of renewable energy assets under construction or development now consists of approximately 1,500 MW of wind power and approximately 400 MW of run-of-river hydroelectric power.
About AltaGas Income Trust
AltaGas Income Trust is one of Canada’s largest and fastest growing energy infrastructure organizations. The Trust creates value by acquiring, growing and optimizing gas and power infrastructure, including a focus on renewable energy sources.
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