Canadian renewable energy developer Innergex Renewable Energy has announced a strategic partnership with US investment manager Irradiant Partners to sell minority interests in its Texas portfolio.
Under the agreement, Irradiant will acquire 49.9% of Innergex's 250MW Phoebe solar farm, 226MW Griffin Trail wind array, and 22.2% of the 350MW Foard City wind site for approximately US$188 million (CAN$257 million), which includes customary adjustments for working capital.
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The transaction aims to bolster Innergex's financial position by using the net proceeds primarily to repay existing debts associated with the Foard City and Phoebe projects, as well as to manage the power hedge offtake contract at Phoebe. The remaining funds are expected to support general corporate purposes.
Innergex president and chief executive Michel Letellier expressed confidence in the partnership, stating, “We are proud to partner with Irradiant to de-risk and enhance our Texas portfolio. We have built large scale and high-quality assets in Texas, and we believe that this new structure, where we depart from the power hedge offtake model, will enable us to improve our overall risk profile and optimize the performance of our assets.”
