Innergex and Hydro-Qubec pen $365M deal for Gasp wind farm

Hydroelectric company Innergex Renewable Energy Inc.has struck a 20-year power purchase agreement with Hydro-Qubec and will move ahead with plans for a wind farm in partnership with three Mi'kmaq communities.

The $365-million project in the Gaspe Peninsula will generate 150 megawatts of power. Annual production is estimated at 515,000 megawatt hours, which can power 30,000 homes, the company said Monday.

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The Mesgi'g Ugju's'n wind farm is expected to begin operation at the end of 2016.

Innergex secured the joint agreement with three Mi'kmaq communities in Gasp the Gesgapegiag, Gespeg and Listuguj.

The company expects the project to deliver revenues of $55 million and adjusted earnings before interest, taxes, depreciation and amortization of $45 million in the first year of operation.

Innergex says it expects to fund the majority of the investment and receive about 75 per cent of the project's cash flows in the first year, while the Mi'kmaq communities will have the right to increase their equity stake up to 65 per cent.

Construction on the wind farm is scheduled to begin in 2015, after it receives certain pre-construction authorizations later this year.