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Released November 13, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Algonquin Power & Utilities Corporation (NYSE:AQN) (AQN) (Oakville, Ontario) plans to sell its renewables business, company executives said Friday, to become a "pure-play regulated utility." In the meantime, AQN continues to develop its renewables portfolio
"We have now kicked off the formal sale process for our renewable energy business," said interim Chief Executive Officer Chris Huskilson, on the third-quarter earnings-related conference call. "We of course are aware of the dynamic market environment. That said, we are seeing continued inbound interest from prospective buyers. We own a sizeable fleet of high-quality renewable assets and an extensive development pipeline."
Huskilson said AQN is in the process of responding to interested buyers and he expects something will be finalized in 2024.
"Both our renewable and regulated segments have considerable long-term growth potential," he added.
Despite the launch of the sale process, AQN still plans US$300 million in 2023 capital expenditures (capex) for its renewables business. Huskilson did not provide a figure for overall 2024 capex but said "we are going to continue to invest in the business, but we're also mindful of where we're spending money."
Huskilson provided updates on AQN's renewable projects. In terms of solar, the $45 million Phase II of its New Market solar plant project in Hillsboro, Ohio, which would add 65 megawatts (MW) worth of photovoltaic (PV) panels, has 95% of the panels installed. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here to read a detailed project report.
Meanwhile, site preparation is 20% complete at the Carvers Creek Solar Plant in Gloucester, Virginia. The $240 million project would utilize PV panels from NEXTracker (NASDAQ:NXT) (Fremont, California) to generate 150 MW of solar power. Engineering, procurement and construction (EPC) firm DEPCOM Power Incorporated (Scottsdale, Arizona) began construction last year.
Also in the site preparation phase, with 40% completed, is the $187 million Clearview Solar Plant in Woodstock, Ohio. The plant would utilize panels from First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) for 144 MW of solar generation. Subscribers can read reports on the Carvers Creek and Clearview projects.
"In total, we have approximately 400 megawatts of solar projects in various stages of construction," Huskilson said.
As far as wind power goes, he said two wind turbine plant projects recently reached commercial operations earlier this quarter: a Phase II addition to the Sandy Ridge Windfarm near Tyrone, Pennsylvania, which added 88 MW to its generation fleet, as well as a Phase II addition at the Shady Oaks Windfarm in Compton, Illinois. Subscribers can click here for more information on the projects.
Huskilson said AQN has brought more than 300 MW of wind into service year-to-date, and he expects 450 MW to be placed into service in 2023.
In terms of its regulated segment, AQN earlier this year was awarded two grant awards from the U.S. Department of Energy (DOE), which would utilize funding from the Grid Resilience and Innovation Partnerships (GRIP) Program that was born from the Infrastructure Investment and Jobs Act (IIJA).
"We are only one of four regulated utilities to successfully secure two awards," Huskilson said. "This is but the first step of several toward the opportunity to invest over US$100 million in accelerating the modernization of our electricity infrastructure ... with the DOE grants covering 50% of the costs."
He said AQN aims to reduce business costs within the regulated segment, which could lead to net-zero investments such as "investing in our gas assets so that they're more flexible ... from a gas generation perspective, if an asset is more flexible, then it doesn't have to run as much of the time and therefore has less emissions."
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"We have now kicked off the formal sale process for our renewable energy business," said interim Chief Executive Officer Chris Huskilson, on the third-quarter earnings-related conference call. "We of course are aware of the dynamic market environment. That said, we are seeing continued inbound interest from prospective buyers. We own a sizeable fleet of high-quality renewable assets and an extensive development pipeline."
Huskilson said AQN is in the process of responding to interested buyers and he expects something will be finalized in 2024.
"Both our renewable and regulated segments have considerable long-term growth potential," he added.
Despite the launch of the sale process, AQN still plans US$300 million in 2023 capital expenditures (capex) for its renewables business. Huskilson did not provide a figure for overall 2024 capex but said "we are going to continue to invest in the business, but we're also mindful of where we're spending money."
Huskilson provided updates on AQN's renewable projects. In terms of solar, the $45 million Phase II of its New Market solar plant project in Hillsboro, Ohio, which would add 65 megawatts (MW) worth of photovoltaic (PV) panels, has 95% of the panels installed. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here to read a detailed project report.
Also in the site preparation phase, with 40% completed, is the $187 million Clearview Solar Plant in Woodstock, Ohio. The plant would utilize panels from First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) for 144 MW of solar generation. Subscribers can read reports on the Carvers Creek and Clearview projects.
"In total, we have approximately 400 megawatts of solar projects in various stages of construction," Huskilson said.
As far as wind power goes, he said two wind turbine plant projects recently reached commercial operations earlier this quarter: a Phase II addition to the Sandy Ridge Windfarm near Tyrone, Pennsylvania, which added 88 MW to its generation fleet, as well as a Phase II addition at the Shady Oaks Windfarm in Compton, Illinois. Subscribers can click here for more information on the projects.
Huskilson said AQN has brought more than 300 MW of wind into service year-to-date, and he expects 450 MW to be placed into service in 2023.
In terms of its regulated segment, AQN earlier this year was awarded two grant awards from the U.S. Department of Energy (DOE), which would utilize funding from the Grid Resilience and Innovation Partnerships (GRIP) Program that was born from the Infrastructure Investment and Jobs Act (IIJA).
"We are only one of four regulated utilities to successfully secure two awards," Huskilson said. "This is but the first step of several toward the opportunity to invest over US$100 million in accelerating the modernization of our electricity infrastructure ... with the DOE grants covering 50% of the costs."
He said AQN aims to reduce business costs within the regulated segment, which could lead to net-zero investments such as "investing in our gas assets so that they're more flexible ... from a gas generation perspective, if an asset is more flexible, then it doesn't have to run as much of the time and therefore has less emissions."
Subscribers to Industrial Info's GMI Database can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
