Canadian renewable energy firm Algonquin Power & Utilities has reached an agreement to sell its 49% stake in three utility-scale wind assets in the US to InfraRed Capital Partners.
The companies have not disclosed the financial details of the deal.
Go deeper with GlobalData
Algonquin will sell its stake in the 149MW Deerfield wind farm in Michigan and Odell, a 200MW wind farm located in Minnesota, as well as the 202MW Sugar Creek project in Illinois.
InfraRed has also agreed to acquire an 80% stake in Blue Hill, a 175MW wind farm located in Saskatchewan, Canada.
The deal is expected to support the geographic and offtake diversity of InfraRed’s renewable asset portfolio.
InfraRed Capital Partners Americas head Jack Paris said: “These assets fit perfectly into our approach to the energy transition.
“They benefit from being heavily contracted with the result of de-risked revenue streams, alongside their geographic diversification.
“We are excited that this investment marks the start of a long-term partnership with Algonquin.
“We look forward to leveraging their expertise, acquired from their 4GW of operating renewables capacity, to act as operator of both the US portfolio and Blue Hill.”
The deal is expected to close in December this year subject to regulatory approvals and customary closing conditions being met.
Algonquin will continue to operate all four wind farms following the deal.
Infrared said the deal shows an alignment between the two firms on advancing the United Nations’ Sustainable Development Goals.
The company invests in real assets that could ‘contribute positively’ to society and support the transition to net-zero emissions.
In December 2020, RWE agreed to sell a 51% stake in four onshore wind facilities in Texas to Algonquin.
The deal included the Stella, Cranell, East and West Raymond wind projects, which have a total installed capacity of 861MW.
