ReD (formerly Sprott) closes deal on 4 wind power projects
Here is a report from the business news world on a recent transaction.
Renewable Energy Developers (ReD) has closed a deal to buy four Ontario wind projects that total 50MW from affiliates of Wind Works Power. The projects have 20-year feed-in tariff contracts with the Ontario Power Authority.
ReD and its financial partner provided secured loans to the projects during 2012. The Toronto-based company has co-developed the projects for the past 14 months with Wind Works and has submitted all projects for renewable energy approvals (REA) in 2013. The proponents have proposed to employ Repower MM92 2MW turbines.
It is expected that ReD and its financial partner will each hold a 50% ownership interest in the projects once they are completed and will equally fund the project construction costs in 2014.
Toronto-based Capstone Infrastructure recently agreed to acquire ReD (formerly Sprott Power) in a deal valued at about C$70m.
“I am very pleased to complete this transaction and increase our contracted development pipeline of projects,” said ReD president and CEO Jeff Jenner.
“With the strength of our financial partner and the proposed arrangement with Capstone Infrastructure, these development projects will be fully supported as they move into construction and operation.”
Ontario Environment Ministry officials are reviewing REA applications for 20MW Ganaraska, 10MW Settlers Landing, 10MW Snowy Ridge and 10MW Cloudy Ridge.