BluEarth closes acquisition of operating hydroelectric plants
By Alyssa Dalton
June 6, 2011 – BluEarth Renewables Inc., an independent renewable power producer, has closed its acquisition of an interest in ACH Limited Partnership. ACH owns eight operating hydroelectric plants with 131 MW of capacity in Ontario. ACH was previously owned by AbitibiBowater and the Caisse de depot et placement du Quebec.
BluEarth and an unnamed Canadian institutional investor partnered on the $640-million acquisition, where the plants have approximately 19 years remaining in a 20-year power purchase agreement with the Ontario Power Authority. The plants are expected to generate long-term stable cash flows, said BluEarth.
“As part of our growth strategy, we wanted to acquire operating assets out of the gate to generate near term cash flow to internally finance the development of our business,” said Kent Brown, president and CEO. “Our primary focus now shifts to the acquisition of development projects, where our experienced team and financial strength have a unique ability to advance projects that may be stuck lacking capital or experience.”