Boralex Inc. (TSX: BLX) announced June 8 that it has signed a conditional buy/sell option for a 25% economic interest in the 230-MW Niagara Region Wind Farm project.
Enercon is the majority owner of the project. The total investment planned for this major undertaking is between C$900 million and C$950 million. Boralex said it will immediately begin coordination of the project construction phase in partnership with Enercon. Extending across the Regional Municipality of Niagara, the Township of West Lincoln, the Town of Wainfleet and Haldimand County in Ontario, the Niagara Region Wind Farm project will be made up of 77 Enercon 3-MW turbines. Construction will begin in June.
Boralex will have the obligation to exercise the option if certain financial conditions are met at the time of signature of a project financing agreement. If unexercised at that time, Boralex will be entitled to exercise the option at its discretion following commercial commissioning of the project. Boralex expects that C$60 million in equity will be needed to exercise the option. Boralex will be the project operator following exercise of the option. The initial consideration paid by Boralex in connection with the acquisition of this option will be approximately C$5 million, which will primarily consist of a deposit payable to Enercon.
Boralex is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. Currently, it operates in Canada, France and the United States with an asset base with a capacity of more than 1,110 MW, of which over 950 MW are under its control. Boralex is also developing, both independently and with partners, a number of energy projects of over 150 MW of power will be commissioned by the end of 2017.