Boralex to sign joint venture for French wind power facility

Canadian independent power producer Boralex ,Inc. announced that it has signed an agreement with Seris SA, a company in France which specializes in wind power, to set up a joint venture for the constr…

Canadian independent power producer Boralex ,Inc. announced that it has signed an agreement with Seris SA, a company in France which specializes in wind power, to set up a joint venture for the construction and operation of a 10.4 MW wind power facility in Avignonet-Lauragais, in the south of France. Boralex SA will retain a 60% interest in the joint venture which will be responsible to complete the project estimated to cost CAD 12 million. Debt financing of CAD 11 million will be obtained from a consortium of European banks which specialize in the financing of wind power. This is an innovative breakthrough following new regulations covering wind power produced in France. All of the electricity provided by this power station will be sold under a fifteen-year-long term contract with Electricit de France (EDF). This project, the company“s first investment in the production of electricity from wind power, will further diversify its energy production and add to its asset base in France. “Boralex will use its expertise and know-how in the construction, start-up and operation of this greenfield energy power station, add to its presence in the energy sector in France and will contribute to earnings in the fourth quarter of fiscal year 2002”, said Jacques Gauthier, president and chief operating officer. The construction of this power station is expected to begin in late 2001 with start-up anticipated for the summer of 2002. Once completed, Boralex will have three power stations in France with a total installed capacity of 23 MW. It already has interests in a 1 MW hydroelectric power station in La Rochette, in Savoie, and in a 14 MW natural gas fired cogeneration power station in Blendecques, Pas-de-Calais. The closing of this transaction is expected to be on or before 22 December 2001, subject to obtaining certain consents.