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Fengate to acquire 25% stake in 120MW wind project in US

CTBR Staff Writer Published 14 April 2016

Canadian real estate and infrastructure investment firm Fengate Capital Management has agreed to buy 25% stake in San Juan Mesa that operates a 120MW fully contracted wind project located in New Mexico.

With the stake acquisition, Fengate has made its first investment in the US.

Fengate managing director of infrastructure for North America George Theodoropoulos said: "The investment in San Juan Mesa provides an opportunity for Fengate to invest in a fully-contracted, brownfield asset with a strong operating record and establish a relationship with NRG, one of the largest operators of wind farms in the United States.

"It provides predictable, long-term cash flows for our investors and extends Fengate's robust portfolio of renewable energy projects into the U.S. market."

However, the valuation of the deal is not disclosed and the transaction is yet to receive an approval from the Federal Energy Regulatory Commission (FERC).

San Juan Mesa is an operating wind project is located near Elida. It sells the electricity produced from the facility to Southwestern Public Service Company, a subsidiary of Xcel Energy, under a power purchase agreement (PPA).

A majority stake in San Juan Mesa is owned by an affiliate of NRG Energy, which oversees the project's operations.

While buying a stake in San Juan Mesa marks Fengate's entry into wind power space, the company has already made investments in solar, hydro, and biomass projects in Canada and the UK.

Earlier this month, Fengate acquired an ownership stake in the Western Australia Worsley Multi-fuel Cogeneration plant, which is also co-owned by General Electric Unit, GE Energy Financial Services and funds managed by Whitehelm Capital.

Worsley MFC, a 104 MW multi-fuel cogeneration plant, supplies steam and electricity to the Worsley Alumina refinery in Collie, Western Australia under a 25-year capacity purchase agreement.