Algonquin to buy four US wind generation facilities from Gamesa for $888 mn

Canada's Algonquin Power & Utilities Corp today said that it will buy Gamesa Corporation's 480 MW of wind generation portfolio in the US for about $888 million.

Listed on the Toronto Stock Exchange and based in Ontario, Algonquin will buy 480 MW wind portfolio of Gamesa that comprises of four facilities, the 200 MW Minonk facility, 150 MW Senate plant, the 80 MW Pocahontas Prairie and the 50 MW Sandy Ridge facility located in Illinois, Texas, Iowa and Pennsylvania, respectively.

Pocahontas Prairie and Sandy Ridge have recently reached commercial operation, and Senate and Minonk are in construction stages, which are expected to be operational in Q4 2012.

Total annual energy production from the four facilities is expected to be 1,644 GW-hrs per year. The Projects are comprised of 240 Gamesa G9X-2.0 MW wind turbines which are well suited to the wind regimes and have been proven through the installation of over 3,200 MW of G90 turbines to date worldwide.

All the facilities have entered into a 20 year contract with Gamesa to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities.

Algonquin intends to fund the acquisition through about 45 per cent debt and 55 per cent equity.