Atlantic Power acquires two biomass plants in South Carolina

In Massachusetts, Atlantic Power Corporation executed an agreement to acquire two biomass plants in South Carolina from EDF Renewables Inc. for $13 million. The biomass fuel for the plants consists primarily of mill and harvesting residues. Each of the plants has a capacity of 20 megawatts. The two plants are identical in design and have been in commercial operation since 2013. All of the output of the two plants is sold to Santee Cooper, a state-owned utility, under Power Purchase Agreements that run to 2043.

Closing of the transaction is expected to occur late in the third quarter or in the fourth quarter of 2019, following a restructuring of the plants’ ownership structure by EDF Renewables after the end of relevant tax credit recapture periods. The transaction is not subject to regulatory approval.  Atlantic Power will assume operation of the plants at closing, or potentially earlier, subject to negotiation of an agreement with EDF Renewables. The purchase will be funded from the Company’s discretionary cash.