Innergex completes its joint venture partnership with Energía Llaima

Innergex Renewable Energy (TSX:INE) announced that it has completed its previously announced joint venture partnership with Energia Llamia for a 50 percent ownership in the company.

As quoted in the press release:

Energia Llaima is an innovative and growing renewable energy player located in Santiago, Chile. It owns a major interest in the 12 MW Energía Coyanco hydro project and in the 34 MW solar thermal facility Pampa Elvira. Energía Llaima’s development portfolio includes two hydro projects in advanced stage of development, the 109 MW Central Frontera and the 16 MW Central El Canelo, as well as other early development stage projects. It also has been selected in a bid process to acquire the 140 MW Duqueco hydro project which includes two facilities in Chile, for which closing should occur shortly.

Innergex invested an initial amount of US$10 million (C$12.8 million) through available funds under its corporate revolving credit facilities and has agreed to invest an additional US$100 million (C$140.5 million) over a 12-month period, of which US$90 million will be used for the acquisition of the Duqueco hydro project.

The Energía Coyanco hydro project and the Pampa Elvira solar project should generate projected Adjusted EBITDA of approximately US$6.5 million (C$8.3 million) annually.

“We are delighted to take roots in Chile through this joint venture with Energía Llaima. We share a strong commitment to further expand the business and to growing our presence in the South American energy market,” said Michel Letellier, President and Chief Executive Officer of Innergex. “We remain committed to producing cost efficient, clean and reliable renewable energy in respect of the environment and surrounding communities. This partnership meets all of our strategic goals.”

“Welcoming Innergex as a partner in our company makes all of our growth plans more achievable,” said Ian Nelson, Chief Executive Officer of Energía Llaima. “We intend to become a larger player in Chile and throughout South America by developing and acquiring high quality assets. Innergex’s vast experience and expertise will allow us to continue building on our success.”

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