H2O Power and TCorp have completed a transaction in which TCorp will acquire an interest in H2O Power’s Canadian hydroelectric generating assets.
H2O Power specializes in the generation of clean and reliable hydroelectric power. It is the third largest provider of hydroelectric power in Ontario. TCorp, the investment and financial management partner of the New South Wales (NSW) public sector, now holds a 49% interest in H2O Power’s eight Canadian hydroelectric assets. They are: 9.5-MW Calm Lake on the Seine River, 13.1-MW Fort Frances on the Rainy River, 29.7-MW Iroquois Falls on the Abitibi River, 44.2-MW Island Falls on the Abitibi River, 5.5-MW Kenora on the Winnipeg River, 12.8-MW Norman on the Winnipeg River, 8.4-MW Sturgeon Falls on the Seine River, and 27.5-MW Twin Falls on the Abitibi River.
“We are pleased to be starting a new partnership with TCorp, who also shares our long-term investment approach and commitment to clean energy,” said Jim Gartshore, president of H2O Power. “The existing team, which formed H2O Power in 2007, will continue to operate, maintain and manage these facilities, thereby ensuring continuity and performance. We look forward to working with the new co-owner to produce reliable hydroelectric power from our recently refurbished and upgraded fleet as well as seeking out additional opportunities in renewable energy.”
Assets in the Canadian portfolio have been operating for more than 80 years, and facilities have recently undergone major refurbishments and upgrades to ensure they continue to be maintained as perpetual life assets. There are no plans for changes in reservoir management or operations.
“We are absolutely delighted that we have been able to access this long-term investment opportunity and are able to partner with both H2O Power and their shareholder PSP Investments,” said Stewart Brentnall, chief investment officer at TCorp. “We all share, and are committed to, common objectives, values and investment horizons. This renewable energy infrastructure investment allows us to expand our global investments, further diversify risk and provide positive, sustainable returns over the long term.”
H2O Power acquired two small hydro plants in the U.S. in 2016: 13.6-MW Allegheny 8 and 17.9-MW Allegheny 9. The company is a subsidiary of the Public Sector Pension Investment Board (PSP Investments) since 2011.
TCorp has A$107 billion of funds under management and is a top five Australian asset manager, with a balance sheet of A$75 billion.