First Wind, Algonquin Power and Utilities and Emera Partner to Run Wind Energy Projects

First Wind, Algonquin Power and Utilities and Emera declared that they have contracted an accord to jointly build, own and manage wind energy power projects in the Northeast U.S. They intend to float a new operating company, in which First Wind will hold 51% shares and Northeast Wind, a separate joint venture formed by Emera and Algonquin, will hold 49% shares.

First Wind holds a portfolio of wind energy projects of 370 MW capacity located in the Northeast U.S., which includes five existing projects and two projects that are nearing completion. At the beginning, Emera will hold 75% of the shares of Northeast Wind and Algonquin will own the rest of the shares. Northeast Wind will make an investment of around $333 million to buy the operating company’s 49% stake, which includes a loan amount of $150 million to the operating company. The loan amount will be either returned within a period of 5 years or converted into shares for future projects.

First Wind will collaborate with Emera and Algonquin for the growth of the operating company. In addition to holding maximum share value in the company, First Wind will also function as the managing partner of the new company and continue to control its projects. First Wind will also persist in providing project development services to projects in the Northeast and transfer the projects to the operating company on meeting the defined eligibility standards.