Innergex and Hydro-Québec pen $365M deal for Gaspé wind farm
20-year power purchase contract involves joint agreement with 3 Mi'kmaq communities
Hydroelectric company Innergex Renewable Energy Inc. has struck a 20-year power purchase agreement with Hydro-Québec and will move ahead with plans for a wind farm in partnership with three Mi'kmaq communities.
The $365-million project in the Gaspe Peninsula will generate 150 megawatts of power. Annual production is estimated at 515,000 megawatt hours, which can power 30,000 homes, the company said Monday.
- Quebec OKs wind-power proposals
- Quebec seeks aboriginal wind farms
- Visit CBC Aboriginal for more top stories
The Mesgi'g Ugju's'n wind farm is expected to begin operation at the end of 2016.
Innergex secured the joint agreement with three Mi'kmaq communities in Gaspé — the Gesgapegiag, Gespeg and Listuguj.
The company expects the project to deliver revenues of $55 million and adjusted earnings before interest, taxes, depreciation and amortization of $45 million in the first year of operation.
Innergex says it expects to fund the majority of the investment and receive about 75 per cent of the project's cash flows in the first year, while the Mi'kmaq communities will have the right to increase their equity stake up to 65 per cent.
Construction on the wind farm is scheduled to begin in 2015, after it receives certain pre-construction authorizations later this year.