FirstLight Power has finalized an agreement to acquire Hydroméga Services Inc., including ownership interest in five hydropower generating stations in Québec and five in Northeastern Ontario.
In addition, FirstLight will add Hydroméga’s clean energy development pipeline that includes over 2 GW of wind, solar, storage and hydroelectric projects, doubling FirstLight’s development pipeline to about 4 GW in the U.S. and Canada. The transaction is expected to close in Q4 2023 and is subject to customary closing conditions.
After the recent integration of H2O Power, the addition of Hydroméga’s assets will give FirstLight a combined operating capacity of over 200 MW in Québec and Ontario. Hydroméga’s operating projects include ownership participation by four First Nations. By expanding its presence in the Canadian market, FirstLight is well-positioned to further accelerate its growth across North America by advancing Hydroméga’s renewable energy development pipeline, including over 1 GW of wind projects in Québec and over 1 GW of battery storage projects in Ontario, according to a release. FirstLight will also welcome Hydroméga’s employees into its team.
“The strategic acquisition of the Hydroméga platform continues an exciting and transformational period for FirstLight,” said Alicia Barton, president and chief executive officer of FirstLight. “By adding Hydroméga’s development capabilities and operational assets to FirstLight’s existing diversified renewables and energy storage portfolio, we will position ourselves for even greater growth in the years ahead as we pursue our mission to accelerate the decarbonization of the electric grid by building, operating, and integrating renewable energy and storage to meet the world’s growing clean energy needs.”
Hydroméga has been originating, developing, implementing and operating clean electricity production facilities in Québec for over 36 years and in Ontario for 20 years. In 1987, the company was the first independent power producer to operate hydroelectric facilities in Québec and was also one of the first wind developers in the province.
“As an early leader in Canada’s renewable energy sector, we are proud to join forces with FirstLight to accelerate the development of our diversified clean energy portfolio to fight climate change and increase access to renewable power in our current target markets, Québec, Ontario and beyond,” said Stéphane Boyer, CEO of Hydroméga. “We have always strived to build partnerships with local communities and organizations committed to the development of their region’s renewable power potential, and we are proud of the meaningful partnerships that have been established with local governments for over two decades. Given its track record of managing clean energy assets and natural resources in harmony with the environment, it is clear that FirstLight shares our values, so joining forces with them makes sense on many levels.”
The announcement follows several growth-related initiatives and strategic moves by FirstLight. In addition to the recent integration of H2O Power, FirstLight was part of an investment consortium that secured a lease in the NY Bight Offshore Wind auction. The company also acquired two hydroelectric facilities in western Pennsylvania that expanded the company’s footprint into the PJM and New York electricity market. In addition, FirstLight announced a new partnership in Connecticut to advance hybrid renewable energy projects at the company’s existing Connecticut properties. FirstLight also announced a strategic partnership with New Leaf Energy (formerly Borrego) to develop new solar and storage generation at existing hydropower facilities in Massachusetts and Connecticut.
TD Securities is acting as financial advisor to Hydroméga in connection with the transaction; Davies Ward Phillips & Vineberg LLP is Hydroméga’s legal counsel and KPMG represents Hydroméga as its tax advisor. Blakes, Cassels & Graydon LLP is FirstLight’s legal counsel.
FirstLight has a diversified portfolio that includes over 1,650 MW of operating renewable energy and energy storage technologies and a development pipeline with 2,000+ MW of solar, battery, and offshore wind projects. FirstLight specializes in hybrid solutions that pair hydroelectric, pumped hydro storage, utility-scale solar, large-scale battery and offshore wind assets.
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