Capital Power has announced the sale of a 49% interest in two Canadian wind facilities to Axium Infrastructure for approximately $340 million.
The facilities include the 142 MW Quality Wind project in British Columbia and the 104 MW Port Dover and Nanticoke wind project in Ontario, with a combined capacity of 246 MW.
The assets are fully contracted with investment-grade counterparties, featuring a weighted average remaining contract life of 11 years.
Capital Power will retain management and operational responsibilities under a long-term asset management agreement.
This transaction aligns with Capital Power’s strategy to unlock asset value, enhance financial flexibility, and achieve equity returns exceeding its capital allocation thresholds.
Jason Comandante, Capital Power’s Canada senior vice president, highlighted the deal as a testament to the company’s operational excellence and market credibility. Axium’s vice-president Elio Gatto emphasized the alignment with Axium’s focus on acquiring stakes in high-quality renewable energy projects.
The transaction, supported by CIBC Capital Markets as the financial advisor and Dentons Canada as the legal advisor, is expected to close by the end of 2024, pending customary conditions.
Capital Power, with 9,300 MW of capacity across North America, continues to expand its renewable energy footprint, including exploring grid-scale small modular reactors with Ontario Power Generation.