Canada, Finance, North America, Small Hydro

Connor, Clark & Lunn Infrastructure acquires two small hydro projects in British Columbia

Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) has completed its acquisition of a majority interest in Bremner Trio Hydro Corp. and the closing of a $197 million debt financing for the construction of two hydro projects with its equity partners, Greengen Holdings Ltd. and Sts’ailes Energy Development Limited Partnership.

Bremner owns two construction-stage, run-of-river hydropower facilities located near Harrison Lake in British Columbia: 27-MW Trio Creek and 23-MW Bremner Ceek. The projects have a combined expected energy output of about 150 GWh per year. Each year the projects will offset more than 100 tonnes of CO2, CC&L Infrastructure says.

“CC&L Infrastructure is pleased to complete this transaction and financing,” said Matt O’Brien, president of CC&L Infrastructure. “The investment in the Bremner and Trio Creek hydro assets adds to our growing renewable energy portfolio, which now includes approximately 300 MW of long-life hydroelectric generation. We look forward to advancing these high-quality projects alongside our partners over the coming years.”

Construction of the Trio Creek project is under way and the Bremner Creek project is expected to commence construction later this year. Both facilities are expected to be operational by 2022. In total, the projects will require about $230 million of capital and, once completed, will benefit from predictable, inflation-linked cash flows under a 40-year electricity purchase agreement with the British Columbia Hydro & Power Authority.

CC&L Infrastructure invests in middle-market infrastructure and infrastructure-like assets with highly attractive risk-return characteristics, long lives and the potential to generate stable cash flows. The Sts’ailes Development Corporation’s (SDC) mission is to serve the sovereign interests of the Sts’ailes people through the creation, ownership and operation of profitable businesses including socio-economic enterprises.

In March 2019, HydroWorld reported that CC&L Infrastructure was part of a group of companies that acquired Regional Power Inc., which owns three hydroelectric projects and has a pipeline of development-stage hydro generation opportunities.