Travelers Capital Corp. announced it arranged C$61 million (US$56 million) in non-recourse project financing for construction of the 16-MW Box Canyon hydroelectric project near Port Mellon, B.C.
Box Canyon Hydro Corp., an affiliate of Elemental Energy Inc., is developing the project with Sound Energy Inc. on Box, Marty and Cascara creeks on the western shore of Howe Sound. It also partnered with the Squamish Nation on whose traditional territory the project is to be located.
Travelers acted as loan and security agent for the non-recourse project financing, which is funded by Industrial Alliance Insurance and Financial Services Inc. and Desjardins Financial Security Life Assurance Co.
Box Canyon was the final project awarded an electricity purchase agreement under BC Hydro’s Clean Power Call in 2010. It is to sell 100 percent of its generation to the provincial utility under a 40-year agreement.
“With Box Canyon reaching financial close and entering the construction phase, Elemental Energy has taken an important step toward our vision of building a strong portfolio of renewable energy projects,” Jamie Houssian, principal of Elemental Energy said.