Covanta Holding Corporation has sold its 13-MW Koma Kulshan hydroelectric project near Seattle, Wash., U.S., to Atlantic Power Corporation.
The purchase price of $12 million was paid in cash, Covanta says. In an early July announcement, Atlantic Power said it had agreed to acquire Covanta’s 50% interest in the run-of-river project for $11.8 million and pay $300,000 for Covanta’s operation and maintenance contract for the project. Atlantic Power already owned 49.75% of the project, held through a partnership. In June 2018, Atlantic Power acquired the 0.25% interest held by the managing general partner for $1.1 million.
“This is an important milestone for Atlantic Power as it marks the first external growth investment after a three-year business restructuring process,” said James J. Moore Jr., president and chief executive officer of Atlantic Power. “We view our hydro assets as having excellent near-term value and strong long-term prospects, so we are pleased to acquire the remaining interests in Koma Kulshan.”
“We are pleased to receive fair value for an asset outside of our core business,” said Stephen J. Jones, president and chief executive officer of Covanta. “This transaction demonstrates our wider plan to rationalize our assets as we strive to improve returns and sharpen our focus on our energy-from-waste business.”
Koma Kulshan has been in operation since 1990. All electricity the project produces is sold to Puget Sound Energy under a power purchase agreement that runs through March 2037.
Atlantic Power owns power generation assets in nine U.S. states and two Canadian provinces, including gas, hydro and biomass. Its other hydro projects include 60-MW Curtis Palmer in New York and 50-MW Mamquam and 6-MW Moresby Lake in British Columbia.