in News Departments > New & Noteworthy
print the content item

Capstone Infrastructure Corp. has agreed to acquire Renewable Energy Developers (ReD) (formerly Sprott Power Corp.) for approximately C$70 million. The transaction, supported by each company's board of directors, is subject to shareholder approval.

According to Capstone, the acquisition results in a larger infrastructure company with power generation facilities across Canada, including 79 MW of installed capacity for wind.

The transaction enables Capstone to access 35 MW of wind projects with 20-year power purchase agreements (PPAs) under development in Nova Scotia, Ontario, Saskatchewan and Quebec, and the option to acquire an additional net 44 MW in wind power projects with PPAs in Ontario. These projects will require equity funding from Capstone in the amount of approximately C$60 million over the next two years, with the balance of the projects’ financing requirement to be satisfied with project level debt, Capstone notes.

Michael Bernstein, president and CEO at Capstone, explains the deal will further bolster Capstone’s ability to source, pursue and execute earlier-stage power opportunities.

"With ReD’s advanced-stage development projects, which are expected to enter into construction in 2013, and the surplus cash Capstone is building up over 2013 and 2014, we see this transaction as a solid strategic match that will contribute to cashflow growth for Capstone," Bernstein says.

Capstone’s portfolio includes investments in gas co-generation, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden and a 50% interest in a regulated water utility in the U.K.



Trachte Inc._id1770
Latest Top Stories

Wind And Solar Are Catching Up With Nuclear Power, Says Report

A new report from the Worldwatch Institute says nuclear energy's share of global power production is steadily shrinking. Meanwhile, renewables' share keeps growing.


Could New Desert Plan Spell The End Of California Wind Energy Development?

The California Wind Energy Association says it is disappointed with the draft Desert Renewable Energy Conservation Plan, which was recently released by state and federal agencies.


New U.S. House Bill Includes Wind PTC Extension

U.S. representatives have introduced the Bridge to a Clean Energy Future Act of 2014, which would extend the production tax credit (PTC) and other provisions through 2016.


Utility-Scale Wind And Solar Keep Getting Cheaper

A new study measures the levelized cost of energy from various technologies and suggests that the costs of utility-scale wind and solar power are catching up with those of traditional sources, even without subsidies.


The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.

Canwea_id1984
Renewable NRG_id1934
Future Energy_id2008