MONTREAL—Boralex Inc. says it bought Northland Power Inc. out of a yet-to-be-built 24-megawatt wind power project south of Quebec City.
Construction of the Frampton, Que., wind farm is set to launch in the first quarter of 2015, according to Boralex.
Under terms of the deal, Boralex will own a 66.7 per cent stake in the project, while the municipality will own the remaining 33.3 per cent interest.
Once constructed, the Frampton wind farm will consist of 12 wind turbines and is covered by a 20-year power purchase contract with Hydro-Quebec
“The acquisition of this quality community project sets a new milestone in Boralex’s development in Quebec and we look forward to beginning collaboration with the community of Frampton,” Boralex president and CEO Patrick Lemaire said in a statement.
Construction costs are estimated to be $75- to $80 million, with the project taking approximately 12 months to complete.
The project is estimated to generate earnings before interest, taxes, depreciation and amortization (EBITDA) of $9 million annually.
Based in Kingsey Falls, Que., Boralex operates two other wind farm sites in Quebec.