Boralex Inc. (TSX: BLX) announces the acquisition of the equity interest owned by Northland Power Inc. into the Frampton community wind power project which has a total capacity of 24 MW (“Frampton”).
Owned by the municipality of Frampton at 33,3% and, after closing of the transaction, by Boralex at 66,7%, the Frampton project shall be located on private lands in the municipality of Frampton, in the Chaudière-Appalaches region in Québec. Once constructed, Frampton will consist of 12 Enercon E-82 wind turbines and is covered by a power sales contract with Hydro-Québec. With a 20-year term, the contract was awarded under the Hydro-Québec Distribution request for proposals for 250 MW of wind power in 2009.
“The acquisition of this quality community project sets a new milestone in Boralex’s development in Québec and we look forward to beginning collaboration with the community of Frampton,” noted Boralex President and CEO, Patrick Lemaire.
Construction of the Frampton project will begin in the first quarter of 2015 in order to commission the project within the next twelve months. The project will require an investment in the range of $75 to $80 million. The quality of the wind resource at the site suggests an average utilization factor of approximately 40%, which should allow the project to generate earnings before interest, taxes, depreciation and amortization of approximately $9 million annually.
Mr. Lemaire added that, “true to its development approach, the Boralex team will be meeting with the community very shortly.” An Open-house meeting will be organized over the coming weeks to initiate contact with the community and present the next steps of the Frampton wind project.
The Frampton acquisition remains subject to certain closing conditions.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.