Innovative $960 Million Financing for Wind Energy Project
Announcing a Major Financing Initiative for Wind Energy
LA CÔTE-DE-BEAUPRÉ, Quebec — La Société de projet BVH1, s.e.n.c., a partnership involving Boralex Inc., Énergir Développement Inc., and Hydro-Québec, has successfully secured $960 million in financing for its ambitious Des Neiges - Secteur sud wind power project. This transformative endeavor is set to deliver 400 megawatts of renewable energy, reinforcing the region's sustainable development and economic growth.
Project Benefits and Economic Impacts
This multifaceted project is poised to serve as a catalyst for economic growth in the region of Côte-de-Beaupré, contributing significantly to both local employment and long-term economic benefits. With an overall investment estimated at nearly $1 billion, the project aims to generate around 500 jobs during its construction phase. Post-completion, it is projected to create approximately fifteen ongoing jobs related to its operation and maintenance.
Moreover, the financial outcomes of this initiative are substantial, with expectations of around $80 million allocated to the communities hosting the project. This funding will focus on local infrastructure and community development, showcasing a responsible approach to economic collaboration.
Strong Partnership for Sustainable Energy
Hugues Girardin, the Executive Vice President and General Manager for North America at Boralex, praised the collaboration between partners, stating, “The partnership between Énergir, Hydro-Québec, and us plays a vital role in the success of this essential wind power project for the province of Québec.” His remarks illustrate the significance of teamwork in the energy sector, especially as they have been collectively engaged in developing wind farms in the region for nearly 15 years.
Diversifying Energy Resources
Jean-François Jaimes from Énergir emphasized the financing's role in advancing diversity within their energy portfolio. By harnessing local resources and expertise, the Des Neiges - Secteur sud project embodies a collaborative effort aimed at boosting renewable energy capabilities in Quebec. Jaimes expressed pride in being part of this landmark initiative and highlighted the importance of reliability and sustainability in energy solutions.
Supporting Clean Energy Goals
Hydro-Québec's Senior Vice President, Mathieu Johnson, remarked on how this project aligns with the company’s commitment to achieving a significant expansion in wind power capacity by 2035. The additional 10,000 MW capacity aims to fortify Quebec's clean energy future and circumvent reliance on less sustainable energy sources, thereby addressing pressing climate concerns.
Breakdown of Financing Structure
The financial composition supporting this venture includes a distinctive arrangement:
- A $733 million construction loan transitioning to a term loan coinciding with the onset of electricity delivery, targeted for late 2026.
- A $170 million bridge loan designed to facilitate refunds related to infrastructure setups. This provision optimizes project capital allocation, ensuring effective use of financial resources.
- A $57 million guarantees facility, reinforcing the project's financial strategy.
The Desjardins Group serves as the Administrative Agent for this financing, illustrating the holistic approach to ensuring the project's financial security.
Milestones and Future Steps
Borea Construction has commenced preliminary site work, a crucial step towards the official start of construction, expected to ramp up shortly. This collaboration with local suppliers ensures that the bulk of labor and materials come from within the Quebec region, fostering local business growth.
Once the facility is fully operational, the project aims to produce approximately 1.2 terawatt-hours (TWh) of renewable energy annually, sufficient to power around 70,000 homes or 325,000 electric vehicles within the region. The Des Neiges - Secteur sud wind project represents the first of three planned wind generation sites on the Seigneurie de Beaupré lands, indicating a long-term commitment to renewable energy in the area.
About La Société de projet BVH1, s.e.n.c.
La Société de projet BVH1, s.e.n.c. was established through a partnership between Boralex Inc., Énergir Développement Inc., and Hydro-Québec, focusing on the Des Neiges - Secteur sud wind power development. The entire project will unfold on the Seigneurie de Beaupré territory, culminating in a significant renewable energy facility with a total capacity of 400 MW.
Contact Information
MEDIA:
Camille Laventure
Senior Advisor, Public Affairs & External Communications
438 883-8580
camille.laventure@boralex.com
INVESTOR RELATIONS - Boralex:
Stéphane Milot
Vice President, Investor Relations and Financial Planning and Analysis
514 213-1045
stephane.milot@boralex.com
Frequently Asked Questions
What is the Des Neiges - Secteur sud wind project?
This project is a wind power initiative aimed at generating 400 MW of renewable energy in the Côte-de-Beaupré region.
Who are the partners involved in this project?
The main partners include Boralex Inc., Énergir Développement Inc., and Hydro-Québec.
How many jobs will the project create?
The project will create approximately 500 jobs during construction and around fifteen ongoing positions post-completion.
What is the financial scope of the project?
The financing amounts to $960 million, aimed at developing and operating the wind power project.
When will the project become operational?
The facility is expected to start delivering electricity by late 2026 after the completion of construction work.
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