LS-Power-buys-Algonquin-renewables-business-for-2.5-billion

LS Power buys Algonquin’s renewables business

USA

NEW YORK, August 12, 2024 – US energy infrastructure company LS Power has agreed to buy the renewable energy business of Canadian utility Algonquin Power & Utilities for up to USD 2.5 billion, the companies announced on Friday.

Algonquin’s renewables business consists largely of wind and solar assets located throughout the US and Canada, including 44 operating assets with more than 3,000 MW generating capacity and an 8,000 MW pipeline of wind, solar, battery storage and natural gas projects in various stages of development.

Approximately 2,700 MW of the portfolio’s assets are located in the US, with the remaining 300 MW located in Canada. Algonquin’s hydroelectric assets are not included in the deal.

Total consideration for the transaction will be up to USD 2.5 billion excluding debt, consisting of USD 2.28 billion of cash at closing and an additional cash amount of up to USD 220 million linked to an earn-out agreement concerning certain wind assets.

“This represents a significant strategic investment in and expansion of LS Power’s renewable energy portfolio,” said Paul Segal, CEO of LS Power. “This business complements our existing fleet of more than 19,000 MW of renewable, energy storage, flexible gas and renewable fuels projects. We believe this platform will play a significant role in meeting the challenges of rising electric demand and advancing the energy transition.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in Q4 2024 or Q1 2025.

Photo courtesy of the American Public Power Association