International energy producer Boralex Inc. has signed a binding letter of agreement with Sequoia Energy Inc. that will give the company control of a 22 MW hydropower project that is being constructed near Gold Bridge, British Columbia.
Boralex says the Gold Bridge project will require an investment of about US$60 million, but all of the plant's main permits have been secured.
"We are very pleased to announce this new hydroelectric project to further drive development in British Columbia," says Boralex President and Chief Executive Officer Patrick Lemaire.
The company will establish a permanent group within the province, Lemaire says, further helping develop Boralex's presence within North America.
Boralex and Sequoia will cooperate through the plant's construction through commercial operation, ensuring that stakeholder and First Nations are satisfied.
The acquisition is subject to the signing of formal terms, agreements and closing conditions. Boralex says it expects to close on the plant in fall 2012, with financing for the project to be in place before the end of the year.
Boralex's hydro portfolio includes an installed capacity of more than 500 MW spread across Canada, the northeastern U.S. and France.
Commissioning of the hydropower facility is expected before the end of 2013.
HydroWorld.com reported that Boralex had acquired the 14.5-MW Ocean Falls hydro station -- also located in British Columbia -- in April 2009.