Alterra Power Corp. (TSX: AXY) said Aug. 11 that it made progress in the second quarter of this year on several power projects, including the 204-MW Shannon wind farm in Texas.
Shannon wind farm
- On June 30, the company closed a $286.8 million non-recourse credit facility for the Shannon project. The facility was supplied by Citibank N.A., Santander Bank N.A. and the Royal Bank of Canada, and consists of a $212.2 million construction loan plus $74.6 million in various letters of credit. The loan is expected to be repaid from a $219 million tax equity investment commitment (subject to typical conditions precedent) supplied by subsidiaries of Citicorp North America Inc. and Berkshire Hathaway Energy.
- On June 30, the company entered into a partnership agreement under which an affiliate of Starwood Energy Group Global LLC acquired a 50% interest in the Shannon project. Under the agreement, Alterra will continue to manage the project.
- Road construction, turbine foundations and collector lines have been completed. Wind turbine delivery commenced in June and turbine erection commenced in July. Alterra expects commercial operations to commence in the fourth quarter of 2015 or early 2016.
Jimmie Creek hydro project
- At this 62-MW run-of-river project in British Columbia, construction is ahead of schedule, with intake excavation complete, penstock installation 75% complete, concrete intake and rubber dam 50% complete, and the powerhouse and associated facilities well underway. The facility is expected to commence generation in the summer of 2016.
- The company, in partnership with Axium Infrastructure, is constructing the Jimmie Creek project, which will sell 100% of its power to BC Hydro under a 40-year power purchase agreement (PPA) beginning in 2016. The project has a projected annual output of 159,000 MWh. The Jimmie Creek facility will use excess, unused capacity on the Toba Montrose transmission line that connects Alterra’s Toba Montrose hydro facility to the BC Hydro substation at Saltery Bay. Jimmie Creek is being constructed under an Engineering, Procurement, and Construction Management contract with SNC-Lavalin Inc.
New hydro project
- The company signed an agreement with the Klahoose First Nation to jointly develop the 15 MW Tahumming hydro project in British Columbia, near the Toba Montrose and Jimmie Creek projects.
“With construction fully underway at the Shannon and Jimmie Creek projects, we are on track to be over 50% larger in 2016 on an owned capacity basis,” said Alterra CEO John Carson. “These new projects will join our existing fleet, which has now met or exceeded generation targets for four consecutive quarters.”
The company operates five power plants totaling 553 MW of capacity, with operations in Canada and Iceland, and has another two power plants totaling 266 MW of capacity under construction, which are both expected to be fully operational by 2016. On Jan. 30, the company sold its interest in the Soda Lake facility and certain geothermal development assets to an affiliate of Cyrq Energy.