Westbridge Renewable Agrees to Sale of Five Canadian Solar Projects

Westbridge Renewable Energy Corp., a developer of utility-scale solar PV projects, has entered into definitive agreements regarding the purchase by Metka-EGN Ltd. (a subsidiary of MYTILINEOS Energy & Metals) of a portfolio of five solar projects located in Alberta, Canada, from Westbridge, with anticipated aggregate capacity of 1.4 GWDC upon commercial operation.  

The transaction is to be completed by way of a share purchase by Metka of all the issued and outstanding shares of the following Westbridge subsidiaries: Georgetown Solar Inc., Sunnynook Solar Energy Inc., Dolcy Solar Inc., Eastervale Solar Inc. and Red Willow Solar Inc, (collectively, the SPVs). Westbridge will retain ownership of the SPVs and continue to lead the development of the projects until closing.

The projects under development by each of the SPVs:

  • Georgetown – Solar power plant with a capacity of up to 230 MWAC (278 MWDC), located in Vulcan County, Alberta;
  • Sunnynook – Solar power plant with a capacity of up to 280 MWAC (332 MWDC), located in Special Area No. 2, Alberta;
  • Dolcy – Solar power plant with a capacity of up to 200 MWAC (246 MWDC), located in the municipal district of Wainwright, Alberta;
  • Eastervale – Solar power plant with a capacity of up to 300 MWAC (274 MWDC), located in the municipal district of Provost, Alberta; and
  • Red Willow – Solar power plant with a capacity of up to 225 MWAC (280 MWDC), located in Stettler County No. 6, Alberta.

It is anticipated that upon entering into operation, the projects will:

  • Generate 2.1 TWh per year of renewable energy, equivalent to the electricity necessary to provide power to 200,000 Canadian homes for one year;
  • Have a total estimated capital expense investment of 1.7 billion Canadian dollars – excluding battery and energy storage system equipment (BESS) – which will be disbursed (except for the advance payment) in the various phases of project development and construction, with expected completion in 2026-2027. The capital expense investment is expected to be equally distributed over a period of four years.

The two most advanced projects, Georgetown and Sunnynook (approximately 510 MW) are expected to reach ready-to-build (RTB) status by the end of this year, while the remaining three projects (approximately 800 MW) are in advanced development status with RTB expected by mid-2024.

All of the projects have applied for and/or been permitted for the installation and use of a BESS, with a total anticipated combined storage capacity of 1,200 MWh for the total portfolio.

“The definitive sale agreements for our Alberta portfolio, not only proves our business model, but solidifies the value of our entire platform,” says Stefano Romanin, CEO and director of Westbridge Renewable. 

According to MYTILINEOS chairman and CEO, Evangelos Mytilineos, the investment is the biggest so far in the history of the company .

The purchase price with respect to each SPV is based on the relevant project’s actual installed maximum solar PV direct-current capacity and is subject to standard working capital and indebtedness adjustments and adjustments in the event interconnection costs exceed estimates. 

As of the date hereof, the aggregate purchase price, payable in cash, with respect to all of the projects is estimated to be between CA$217 million and CA$346 million, subject to the adjustments.

Closing of the purchase and sale of each SPV is conditional upon, among other things:  obtaining approval of the purchase and sale by Westbridge shareholders and the TSX Venture Exchange and obtaining regulatory approvals from the Alberta Utilities Commission.

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