Mytilineos enters Canadian market with 1.4GW solar portfolio acquisition

Mytilineos has acquired a portfolio of five solar projects located in Alberta, Canada, from utility-scale solar development firm Westbridge Renewable Energy Corp.

The acquisition marks Mytilineos' entry into the North American market and builds on the company's strategy to expand into international, business-friendly markets.

The solar projects have a combined capacity of 1.4GW and include:

• Georgetown – Solar power plant with a capacity of up to 230MWac (278MWdc), located in Vulcan County, Alberta;
• Sunnynook – Solar power plant with a capacity of up to 280 MWac (332 MWdc), located in Special Area No. 2, Alberta;
• Dolcy – Solar power plant with a capacity of up to 200 MWac (246 MWdc), located in the municipal district of Wainwright, Alberta;
• Eastervale – Solar power plant with a capacity of up to 300 MWac (274 MWdc), located in the municipal district of Provost, Alberta; and
• Red Willow – Solar power plant with a capacity of up to 225 MWac (280 MWdc), located in Stettler County No. 6, Alberta.

Once operational, the projects will produce a combined 2.1TWh of renewable energy per year, enough to power 200,000 Canadian homes and will avoid the annual emissions of 1,500,000 tonnes of carbon.

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According to Mytilineos, a capex investment of CAD$1.7 billion (US$1.2 billion) will be required to complete the five utility-scale projects with project completion expected between 2026 and 2027.

Currently, Georgetown and Sunnynook are the most advanced projects and are expected to reach ready-to-build status by the end of this year. The remaining projects are in the advanced development stage and should reach ready-to-build status by mid-2024.

All of the projects have applied for and/or been permitted for the installation and use of a battery and energy storage system with a total anticipated combined storage capacity of 1,200MWh.

Westbridge will retain ownership of the projects and continue to lead development until closing.

According to Mytilineos, Canada was a logical choice for the deal due to recent policy announcements. The Clean Technology Investment Tax Credit and Clean Electricity Investment Tax Credit may provide a refundable tax credit of up to 30% on the eligible capex of certain renewable energy generation projects.

More specifically, Alberta has a rapidly growing renewables market and some of the highest solar irradiation in Canada, making it an ideal location for the development of solar projects. Alberta, also has a supportive policy stance with its Renewable Electricity Act, which aims to achieve 30% production from renewable energy sources by 2030.

The acquisition also marks a milestone for Westbridge as the firm's first portfolio monetisation.

Commenting on the transaction, chairman and CEO of Mytilineos, Evangelos Mytilineos, said: “Mytilineos has taken early advantage of the motives that the Canadian government is granting to new renewable developments and decided to proceed with the investment, the biggest so far of the Energy Business Unit in the history of Mytilineos."

Closing of the purchase and sale of each project is conditional upon necessary regulatory and shareholder approvals.