HQI US Holding LLC, a wholly-owned subsidiary of Hydro-Québec, is to become the new owner of a fleet of 13 hydropower generating stations in New England with a combined capacity of 589MW in a US$2 billion acquisition deal.
The company has agreed to buy Great River Hydro, LLC from ArcLight Capital Partners, LLC, with the deal including hydropower stations along New England’s Connecticut and Deerfield rivers in the states of Vermont, New Hampshire and Massachusetts.
“Hydro-Québec has a long-term energy partnership with New England, as we have been exporting our hydropower to the region since the 1980s,” commented Sophie Brochu, President and CEO of Hydro-Québec. “This acquisition represents a unique opportunity to combine our know-how in managing and leveraging hydro facilities with Great River Hydro’s thorough understanding of the New England market. By combining our strengths, we can support the development of new renewable energy projects, in a market where such resources are in high demand.”
“We are excited to be joining Hydro-Québec in the coming months,” said Scott Hall, Great River Hydro’s President and CEO. “Their deep knowledge of the hydroelectric industry and long history in the New England market gives us tremendous confidence that Great River Hydro is an ideal fit, and we look forward to continuing to provide clean, renewable hydroelectricity to our New England neighbors for years to come.”`
“We are pleased to announce this transaction with Hydro-Québec,” added Dan Revers, Founder and Managing Partner of ArcLight. “Together with management, ArcLight successfully transitioned Great River Hydro from a high-quality portfolio of assets to a standalone platform positioned for further growth. We are confident that Hydro-Québec will be an excellent steward to Great River Hydro’s stakeholders in the next chapter of its corporate life.”
Great River Hydro has approximately 100 employees, whose jobs and working conditions are expected to be maintained. It operates 13 cascading generating stations and three storage-only reservoirs along 500km of the Connecticut and Deerfield rivers, supplying enough energy to power over 213,000 homes in New England. One fifth of the energy generated by these projects is subject to long-term supply contracts, guaranteeing revenue stability.
