Canadian independent power generation company Capital Power has signed an agreement to acquire a 100% ownership stake in the 100.5MW Buckthorn Wind facility.

Based on the realisation of future market performance, the purchase price of the equity – which was acquired from private investors – is expected to reach up to $69m.

Additionally, the Canadian company has entered into a tax equity partnership with a tax equity balance of $68m.

Capital Power president and CEO Brian Vaasjo said: “The acquisition of Buckthorn Wind provided an opportunity to acquire a young renewables asset with a 15-year weighted average contract life remaining.

“With the addition of Cardinal Point Wind, the long-term contracts from these two new assets enhance our contracted cash flow profile and expand our renewables portfolio to approximately 1,200MW with an additional 100MW in advanced development from Whitla Wind 2.”

Located 60 miles south of Dallas, Texas, Buckthorn Wind began its commercial operations in January 2018. It operates in the liquid Electric Reliability Council of Texas (ERCOT) north region.

The wind facility is equipped with 29 Vestas turbine generators. Capital Power expects to take over the operations by early 2021.

Additionally, the wind facility has a 20-year contract for differences (CfD) for 55% of the clean energy generated by the facility, while the remaining 45% of the energy will be delivered to under a 13-year financial hedge arrangement.

The deal is expected to be completed in the second quarter of this year and will be subject to regulatory approvals and other customary closing conditions.