Innergex Renewable Energy Acquires Rights in 18 Hydro Projects in B.C.
Longueuil, Quebec, Canada September 2, 2008
Innergex Renewable Energy Inc.
(TSX: INE) (the "Corporation") announces it has completed its previously
announced acquisition of a 66 2/3% interest in rights relating to 18
prospective hydroelectric projects representing an aggregate 200 MW of
installed capacity located in the Lower Mainland of British Columbia (the
"Projects"). The remaining 33 1/3% interest in the Projects remains held by
Ledcor Power Group Ltd. ("Ledcor"). This acquisition reinforces the
Corporation's position as one of the most important renewable energy
developers in Canada, with an aggregate capacity of 2,273 MW in operation,
development and prospective projects.
"We are proud to announce to our shareholders that we have succeeded
in completing the acquisition of these sought-after projects. The
successful completion of this transaction results from our long-standing
relationship with Ledcor", mentioned Michel Letellier, President
and CEO of the Corporation. He added "We are confident that
at least two of these Projects, Hurley Creek and Upper Lillooet
(representing an aggregate combined capacity of 70 MW), will be
submitted in BC Hydro's upcoming Clean Power Call. Furthermore,
a 7.5 MW hydroelectric project, Fitzsimmons Creek, is already under
construction, and other projects are expected to be submitted in
the future under BC Hydro's current Standing Offer Program."
These 18 run-of-river hydroelectric power projects could produce over
1,000 GW-hr of clean energy for the Province, meeting the needs of
approximately 98,000 B.C. homes.
The Fitzsimmons Creek project will have an installed capacity of 7.5 MW
and is expected to produce 33.5 millions of KWh. At this stage, the project
has secured a fixed-price EPC contract, obtained all necessary permits and
been submitted to BC Hydro's current Standing Offer Program. The purchase
price of electricity thereunder is $86.93 MW for 2008 and will be indexed
thereafter. The Fitzsimmons Creek project is expected to be in commercial
service in the fall of 2010.
"We are pleased to transfer all our water licenses in connection
with this transaction, and to partner with Innergex in the development
of clean power projects in British Columbia" said Scott Lyons,
President, Ledcor CMI Ltd.
The Corporation paid $8 million in cash for this acquisition. Furthermore
the Corporation issued 200,000 warrants to Ledcor, exercisable for a period of
24 months of the date hereof, at an exercise price of $12.50 per share. The
listing of the additional 200,000 common shares issuable upon exercise of the
warrants was conditionally approved by the Toronto Stock Exchange.
Innergex Renewable Energy Inc. is a developer, owner and operator of
run-of-river hydroelectric facilities and wind energy projects in North
America. The Corporation's management team has been involved in the renewable
power industry since 1990. Without giving effect to this transaction, the
Corporation owns a portfolio of projects which consists of one operating
facility (8 MW), interests in nine development projects with power purchase
agreements under construction or to be constructed between 2008 and 2012
(gross expected capacity of 565 MW), and prospective projects (gross expected
capacity of more than 1,500 MW). Innergex Renewable Energy Inc. also owns a
16.1% interest in Innergex Power Income Fund, a publicly traded income fund
listed on the Toronto Stock Exchange (IEF.UN), and acts as its manager under
long-term management agreements. Innergex Power Income Fund's 12 projects, all
in operation, have a combined gross capacity of 340 MW.
Ledcor Power Inc. is a wholly-owned subsidiary within the Ledcor Group of
Companies. Founded in 1947, Ledcor is a leading, privately-held,
employee-owned group of companies, specializing in building, civil, industrial
and telecommunications projects and services. Ledcor brings an established
history of construction excellence with a team of professionals who measure
their success by client satisfaction.
Forward-looking statements
Investors should note that some statements in this press release are
forward-looking and may not give full weight to all potential risks and
uncertainties. Forward-looking statements are, by their nature, subject to
risks and uncertainties, and actual results, actions or events could
materially differ from those set forth in the forward-looking statements. All
forward-looking statements are only valid as of the date they were made. The
Corporation does not undertake to update forward-looking statements except in
accordance with applicable laws.
Source: CNW Group
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