Innergex Renewable Energy, an independent renewable power producer and project developer, has closed a $534 million construction financing package, marking a significant move in developing the Boswell Springs Wind Project in the U.S.

The financing includes a $203 million ten-year non-recourse term loan with BNP Paribas, Credit-Agricole CIB, Export Development Canada, and MUFG Bank, acting as Joint Lead Arrangers.

The funds will be utilized for the construction and operation of the 329.8 MW wind project situated in Wyoming, United States.

“We are very pleased with the terms of this financing as it demonstrates the strong market confidence in Innergex’s technical and financial abilities to develop high-quality and well-structured assets that generate attractive cash flows,” said Michel Letellier, President and Chief Executive Officer of Innergex.

The total construction costs for the Boswell Springs Wind Project are estimated to be $576 million.

A portion of the first drawdown under the Boswell Springs construction loan will refund equity contributed by Innergex, thereby reducing the need for additional funding.

The company has already funded $103 million through its revolving credit facilities, and the process of securing a tax equity commitment is well underway, expected to conclude during Q3 2023.

Upon completion, the Boswell Springs Wind Project is expected to generate approximately $22 million in annual operating cash flows.

The electricity produced by the project will be sold under a long-term, 30-year, 320 MW busbar power purchase agreement, which has been signed with PacifiCorp, a subsidiary of Berkshire Hathaway.

Commercial operation is scheduled to commence in Q4 2024.

The Boswell Springs Wind Project holds the potential to receive up to 120% of Production Tax Credits (PTC) under the Inflation Reduction Act. This includes a 10% energy community PTC Bonus and a 10% domestic content PTC Bonus.

Innergex has secured the procurement of wind turbine generators from GE Vernova‘s onshore wind business, and the permitting process has been completed. It has also executed Engineering, Procurement, and Construction contracts with Mortenson for the balance of the plant.

Recently the company acquired 60 MW Sault Ste. Marie Solar portfolio in Ontario from Fengate Asset Management for a purchase price of $50.2 million, along with the assumption of $169.5 million in existing debt.

Last August, Innergex announced the completion of an $803 million refinancing of the non-recourse debt of its portfolio of wholly owned assets in Chile, with the issuance of $710 million green bonds maturing in 2036.