- Innergex Renewable Energy Inc. (INE) has signed a 30-year power purchase agreement to produce electricity from the Boswell Springs wind project
- The commercial operation date is set for Q4 2024 and will cost $702 million to build
- The project is subject to the Wyoming Public Service Commission’s final written order
- Operating cash flow from the project is expected to be $29.2 million annually
- Innergex Renewable Energy Inc. (INE) is down 0.25 per cent and is trading at $19.39 per share as of 11:49 a.m. ET
Innergex Renewable Energy (INE) has signed a 30-year, 320-megawatt power purchase agreement with PacifiCorp.
Under the agreement, Innergex will produce electricity from the Boswell Springs wind project in Wyoming.
The company stated its commercial operation date for the project is scheduled to begin during its fourth fiscal quarter in 2024, and total construction costs are expected to be roughly $702 million.
“The contract will provide Innergex with long-term revenue certainty with a high quality, well-capitalized utility… Boswell Springs promises to contribute to improving our payout ratio and to make a significant contribution to the decarbonization targets of the western states, where Innergex sees growing opportunities,” Michel Letellier, President and CEO of Innergex, said.
The power purchase agreement is subject to the Wyoming Public Service Commission’s final written order granting the Certificate of Public Convenience and Necessity for Gateway South.
According to Innergex, the Boswell Springs project was selected following a request for proposals sent out by PacifiCorp in July 2020. Innergex expects the project to benefit from 100 per cent of the U.S.’s production tax credits.
As an estimate, the company stated its operating cash flows from the project are expected to reach approximately $29.2 million annually, excluding any financing structure that has yet to be confirmed. Also, the project is anticipated to create $50.6 million from production tax credits each year.
Innergex Renewable Energy Inc. (INE) is down 0.25 per cent and is trading at $19.39 per share as of 11:49 a.m. ET.