Algonquin Power acquires stake in US Sandy Ridge wind project

4 July 2012 (Last Updated July 4th, 2012 18:30)

Algonquin Power & Utilities Corporation's renewable energy subsidiary has acquired a controlling stake in the Sandy Ridge wide project, in the US.

Algonquin Power & Utilities Corporation's renewable energy subsidiary has acquired a controlling stake in the Sandy Ridge wide project, in the US.

Sandy Ridge is the first of four projects with 480MW wind capacity under construction by Gamesa Corporación Tecnológica.

The company paid $29.7m for the 51% stake in the project, which comprises 25 Gamesa G9X-2.0MW wind generating turbines and has a ten-year power sales contract with JP Morgan Ventures Energy Corporation.

Total expected energy production from the 50MW facility, located in Pennslvania, is approximately 158.3GW-hrs per year.

The subsidiary will fund its portion of the acquisition with approximately 40% debt and 60% equity.

Algonquin's chief executive officer, Ian Robertson, said: "We are very pleased to be bringing the first of these contracted wind power projects into APCo's renewable power portfolio and entering the US wind energy generation market with such a high quality asset."

Alongside with Sandy Ridge, the company has planned to acquire interests in the 80MW Pochahontas Prairie project but decided to defer the transaction.