Boralex Inc. is to sell five U.S. woodresidue power stations for about $93 million U.S., the Quebec-based company said Monday.
The “binding agreement” with ReEnergy Holdings LLC, of New York, involves plants in Maine and New York with a combined capacity of 186 megawatts.
The deal should yield after-tax proceeds of about $81 million U.S., which will be invested in other higher-margin projects, the company said.
“We have entered into this agreement after considerable reflection by Boralex’s management and board of directors about our strategy,” president and chief executive officer Patrick Lemaire said in a statement.
“We have concluded that, at this stage in our development, this transaction provides Boralex with the best opportunity to pursue its growth objectives in the other areas of the renewable energy market.”
Boralex plans to invest the proceeds in new renewable energy projects with long-term contracts in Canada and Europe, primarily in the wind, hydroelectric and solar segments.
The wood-residue plants convert forest biomass such as bark into energy.
Upon closing of the transaction, only 17 per cent of Boralex assets will be in the U.S., according to a company presentation.
About 47 per cent will be in Canada and about 36 per cent in France.
The sale of the five U.S. plants also reduces the company’s woodresidue-to-energy assets from about 35 per cent to 13 per cent.
The sale is expected to close by the end of the year. The transaction is subject to approval by U.S. regulators.
Boralex is to release quarterly financial results on Wednesday.
lmoore@montrealgazette.com
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