Travelers Capital Corp. said Aug. 15 that it has arranged C$61m of non-recourse project financing for Box Canyon Hydro Corp. (BCHC), an affiliate of Elemental Energy Inc., for a hydroelectric project in the Canadian province of British Columbia.
Elemental Energy owns the 16 MW run-of-river hydro project located approximately 10.5 kilometers northeast of Port Mellon, on the west shore of Howe Sound in British Columbia. Box Canyon is in the Traditional Territory of the Squamish Nation, a partner on the project.
The project was developed by Elemental Energy, a Vancouver-based renewable energy investor and developer, and Sound Energy Inc. The project will use the waters of Box Canyon Creek, Marty Creek and Cascara Creek to generate and sell 100% of output to the British Columbia Hydro and Power Authority (BC Hydro) under a 40-year electricity purchase agreement.
The non-recourse project financing was structured and arranged by Travelers Capital, acting as loan agent and security agent, and was funded by Industrial Alliance Insurance and Financial Services Inc. and Desjardins Financial Security Life Assurance Co. “Travelers Capital is delighted to have been selected to arrange the construction and long term financing for this unique project and support our client’s long term vision in the renewable energy sector with their first hydro project investment in Canada”, said Mark Bohn, Managing Partner of Travelers Capital.
“With Box Canyon reaching financial close and entering the construction phase, Elemental Energy has taken an important step towards our vision of building a strong portfolio of renewable energy projects,” added Jamie Houssian, Principal of Elemental Energy.
Travelers Capital is a specialized financial services company that offers structured debt and project finance solutions along with financial advisory services to developers in the renewable energy sector with a focus on middle market transactions up to C$100m or more in size.
Elemental Energy is an active developer, investor and operator of renewable energy projects, with interests in hydro, wind, and solar projects throughout North America. Elemental was retained by BCHC to manage the development, construction and operation of the Box Canyon Hydro Project.