KKR buys stake in Canada transmission project for $872 million

Canada

ST. JOHN'S, May 29, 2024 – Global investment firm KKR will purchase a minority equity stake in Canada’s Labrador Island Link clean energy transmission project from local energy player Emera for USD 872 million, Emera announced on Wednesday.

The Labrador Island Link is a 1,100-kilometre high voltage transmission line that delivers renewable energy to Newfoundland, Nova Scotia and beyond. It was brought on line last year.

The stake sale will furnish Emera with funds to reduce debt and support new investment in its regulated utility businesses.

The project is owned and operated by Newfoundland and Labrador Hydro, but was developed alongside Emera, which holds an equity interest.

KKR will assume Emera’s obligation to fund the remaining initial capital investment.

“KKR has a long history of investing in stable, reliable and essential transmission assets like the Labrador Island Link, and we look forward to beginning this long-term strategic partnership with Emera and NL Hydro to deliver clean energy across the region,” KKR partner and head of North American infrastructure Brandon Freiman said.

Halifax-based Emera has energy investments and operations in Canada, the USA and the Caribbean.