Boralex has signed a binding letter of agreement to acquire a 22MW run-of-the-river hydroelectric project near Gold Bridge in British Columbia, Canada.
The project, owned by Sequoia Energy, will require an investment of $60m and generate around 70GWh annually.
All of the main permits have been secured and construction work is set to be completed before the end of 2013.
The plant is covered by a 40-year electricity purchase agreement with BC Hydro and has a 20-year renewal option.
Boralex president and CEO Patrick Lemaire said that this new hydroelectric project would further drive development in British Columbia.
"A permanent Boralex team will be set up in the province to help ramp up growth," he said. "This acquisition is also a perfect fit with our strategic plan and creates great value from the sale proceeds of our US thermal assets."
Sequoia Energy president and CEO Ron Diduch added: "We value the relationships we have developed in British Columbia and are excited to be working with Boralex, which have a strong track record in developing and maintaining sound relationships."