Innergex buys 18 MW hydropower project on Lican River

Innergex Renewable Energy Inc. has acquired 100% of the shares of Empresa Eléctrica Licán S.A., which owns and operates an 18 MW run-of-river hydro facility with a reservoir for daily regulation for up to 3.5 hours. The facility commissioned in 2011 is located on the Licán river, in the region of Los Rios in Chile.

Licán was acquired for a total enterprise value of US$40.5 million with an equity investment for Innergex of US$16.6 million, broken down to payment to the shareholders and the partial repayment of the existing debt and other costs.

The facility is expected to produce a gross estimated long-term average of 77.8 GWh per year. The asset is expected to reach an Adjusted EBITDA of US$2.1 million on average for the first five full years.

The total equity investment of US$16.6 million will be financed with cash held in Chile.