Innergex Renewable Energy has signed a deal with US-based investment manager Irradiant Partners, divesting minority interests in its 826MW renewable energy portfolio in Texas, US.

The transaction involves the sale of a 49.9% stake in the 250MW Phoebe solar farm and the 226MW Griffin Trail wind array, along with a 22.2% share of the 350MW Foard City wind site.

The total equity consideration for the sale amounts to $188m, inclusive of customary working capital adjustments.

Foard City is a wind farm with a 350.3MW capacity which has been operational since 2019 in Foard County.

Griffin Trail wind farm with 225.6MW capacity has been operational since 2021. It is located in Knox and Baylor Counties, Texas.

The 250MW Phoebe is a solar power facility located in Winkler County, Texas, and began commercial operations in 2019.

The net proceeds from the sale are set to be primarily utilised for repaying the existing debt on the Foard City and Phoebe projects and eliminating the power hedge offtake contract at the Phoebe facility.

The remaining funds will be allocated for general corporate purposes. This strategic move is aimed at de-risking Innergex's assets in Texas and enhancing the overall quality of its portfolio.

The deal is anticipated to strengthen and de-leverage Innergex's balance sheet.

Innergex will retain operating control of the assets.

Innergex president and CEO Michel Letellier stated: “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 optimise the performance of our assets.

“The transaction also provides an opportunity to crystallise value from our operating portfolio in Texas.”