Polaris Renewable Energy Announces Closing Of Acquisition In Puerto Rico
Polaris Renewable Energy has completed the acquisition of Punta Lima Wind Farm in Puerto Rico through an Equity Capital Contribution Agreement with Santander Bank. The wind farm has a 26.0 MW nameplate capacity and operates under a 20-year power purchase agreement with Puerto Rico Electric Power Authority extending until March 2044.
The $20 million transaction was structured as a tax-equity deal, with Polaris becoming the manager and operator while maintaining a controlling equity interest, and Santander retaining a tax equity position. The acquisition required approval from local regulatory bodies and execution of the Agreement.
The strategic move expands Polaris's geographical presence and diversifies its generation mix into wind power. The company sees opportunities for implementing energy storage solutions and providing grid stabilization services, while exploring additional strategic opportunities in Puerto Rico's energy sector.
Polaris Renewable Energy ha completato l'acquisizione del Punta Lima Wind Farm a Porto Rico attraverso un Accordo di Contributo di Capitale Proprio con Santander Bank. Il parco eolico ha una capacità nominale di 26,0 MW e opera sotto un contratto di acquisto di energia della durata di 20 anni con l'Autorità Elettrica di Porto Rico, che si estende fino a marzo 2044.
La transazione da 20 milioni di dollari è stata strutturata come un accordo di equità fiscale, con Polaris che diventa il gestore e operatore mantenendo un interesse azionario di controllo, mentre Santander conserva una posizione di equità fiscale. L'acquisizione ha richiesto l'approvazione degli organismi di regolamentazione locali e l'esecuzione dell'Accordo.
Questa mossa strategica amplia la presenza geografica di Polaris e diversifica il suo mix di generazione verso l'energia eolica. L'azienda vede opportunità per implementare soluzioni di stoccaggio energetico e fornire servizi di stabilizzazione della rete, mentre esplora ulteriori opportunità strategiche nel settore energetico di Porto Rico.
Polaris Renewable Energy ha completado la adquisición del Punta Lima Wind Farm en Puerto Rico a través de un Acuerdo de Contribución de Capital Accionario con Santander Bank. El parque eólico tiene una capacidad nominal de 26,0 MW y opera bajo un contrato de compra de energía de 20 años con la Autoridad de Energía Eléctrica de Puerto Rico, que se extiende hasta marzo de 2044.
La transacción de 20 millones de dólares se estructuró como un acuerdo de equidad fiscal, con Polaris convirtiéndose en el gestor y operador mientras mantiene un interés de capital de control, y Santander conservando una posición de equidad fiscal. La adquisición requirió la aprobación de los organismos reguladores locales y la ejecución del Acuerdo.
Este movimiento estratégico amplía la presencia geográfica de Polaris y diversifica su mezcla de generación hacia la energía eólica. La empresa ve oportunidades para implementar soluciones de almacenamiento de energía y proporcionar servicios de estabilización de la red, mientras explora oportunidades estratégicas adicionales en el sector energético de Puerto Rico.
폴라리스 재생 에너지가 산탄데르 은행과의 자본 기여 계약을 통해 푸에르토리코에 있는 푼타 리마 풍력 발전소를 인수 완료했습니다. 이 풍력 발전소는 26.0 MW의 명목 용량을 가지고 있으며, 푸에르토리코 전력청과 20년 전력 구매 계약을 체결하여 2044년 3월까지 운영됩니다.
2천만 달러 규모의 거래는 세금 자본 거래로 구조화되었으며, 폴라리스가 관리 및 운영자가 되면서 지배적인 지분을 유지하고, 산탄데르는 세금 자본 지위를 유지합니다. 이 인수는 지역 규제 기관의 승인을 필요로 했으며, 계약의 실행이 필요했습니다.
이 전략적 움직임은 폴라리스의 지리적 존재를 확장하고 풍력 에너지로 발전 믹스를 다각화합니다. 회사는 에너지 저장 솔루션을 구현하고 전력망 안정화 서비스를 제공할 기회를 보고 있으며, 푸에르토리코의 에너지 부문에서 추가적인 전략적 기회를 탐색하고 있습니다.
Polaris Renewable Energy a complété l'acquisition de Punta Lima Wind Farm à Porto Rico par le biais d'un Accord de Contribution en Capital Propre avec Santander Bank. Le parc éolien a une capacité nominale de 26,0 MW et fonctionne sous un contrat d'achat d'électricité de 20 ans avec l'Autorité de l'Énergie Électrique de Porto Rico, qui s'étend jusqu'en mars 2044.
La transaction de 20 millions de dollars a été structurée comme un accord d'équité fiscale, Polaris devenant le gestionnaire et l'opérateur tout en maintenant un intérêt en capital de contrôle, et Santander conservant une position d'équité fiscale. L'acquisition a nécessité l'approbation des organismes de réglementation locaux et l'exécution de l'Accord.
Ce mouvement stratégique élargit la présence géographique de Polaris et diversifie son mix de production vers l'énergie éolienne. L'entreprise voit des opportunités pour mettre en œuvre des solutions de stockage d'énergie et fournir des services de stabilisation du réseau, tout en explorant d'autres opportunités stratégiques dans le secteur énergétique de Porto Rico.
Polaris Renewable Energy hat die Übernahme des Punta Lima Wind Farm in Puerto Rico durch eine Eigenkapitalbeitragsvereinbarung mit der Santander Bank abgeschlossen. Der Windpark hat eine Nennleistung von 26,0 MW und arbeitet unter einem 20-jährigen Stromabnahmevertrag mit der Puerto Rico Electric Power Authority, der bis März 2044 läuft.
Die Transaktion über 20 Millionen Dollar wurde als Steuer-Eigenkapitalgeschäft strukturiert, wobei Polaris der Manager und Betreiber wird und ein kontrollierendes Eigenkapitalinteresse behält, während Santander eine Steuer-Eigenkapitalposition einnimmt. Die Übernahme erforderte die Genehmigung der lokalen Regulierungsbehörden und die Ausführung des Vertrages.
Dieser strategische Schritt erweitert die geografische Präsenz von Polaris und diversifiziert ihren Erzeugungsmix in Richtung Windenergie. Das Unternehmen sieht Möglichkeiten zur Implementierung von Energiespeicherlösungen und zur Bereitstellung von Netzstabilisierungsdiensten, während es zusätzliche strategische Möglichkeiten im Energiesektor von Puerto Rico erkundet.
- Acquisition adds 26MW of renewable energy capacity
- Secured 20-year PPA until 2044 providing stable revenue
- Strategic expansion into new jurisdiction
- Diversification into wind power generation
- Potential for energy storage and grid services expansion
- $20M capital expenditure impacts cash position
TORONTO, ON / ACCESS Newswire / March 3, 2025 / Polaris Renewable Energy Inc. (TSX:PIF) ("Polaris" or the "Company"), is pleased to announce that it has closed on the Equity Capital Contribution Agreement ("ECCA") and LLC Agreement with respect to Punta Lima Wind Farm LLC (a wholly owned subsidiary of Santander Bank N.A. -"Santander"-).
The project is an operating onshore wind farm called Punta Lima Wind Farm ("PLWF" or the "Project") with a nameplate capacity of 26.0 MW's located in the Municipality of Naguabo, Puerto Rico. The Project was re-constructed and recommissioned by Santander and has a 20-year power purchase agreement ("PPA") in place with Puerto Rico Electric Power Authority (PREPA) terminating in March 2044.
The transaction has been completed using a tax-equity structure which results in Polaris becoming the manager and operator of the Project with a controlling equity interest and Santander retaining a tax equity interest in the Project. The transaction was subject to customary closing conditions, which principally consisted of approval of the acquisition by local regulatory bodies as well as the execution of the corresponding LLC Agreement. The total equity contribution of
"This strategic acquisition further deploys Polaris capital into another jurisdiction while adding wind into our generation mix", said Marc Murnaghan, President and CEO of Polaris. "We believe that this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly. This includes the use of energy storage to provide competitively priced energy and grid stabilization services as well as exploring further strategic opportunities on the island given its stated future energy requirements."
"Santander is proud to have rebuilt the Punta Lima wind farm in Puerto Rico and is very pleased to be selling its interest to a specialist partner in Polaris," said Nuno Andrade of Santander Corporate & Investment Banking. "It was the right thing to do to support the island's clean energy efforts and we are very happy with this outcome."
About Polaris Renewable Energy Inc.
Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in the acquisition, development, and operation of renewable energy projects in Latin America & the Caribbean. We are a high-performing and financially sound contributor to the energy transition.
The Company's operations include a geothermal plant (~82 MW), four run-of river hydroelectric plants (~39 MW), three solar (photovoltaic) projects in operation (~35 MW) and an onshore wind park (26 MW).
About Punta Lima Wind Farm LLC.
Punta Lima Wind Farm, LLC operates a wind power plant called Punta Lima Wind Farm, The Punta Lima project started production in October 2012 until it was rendered inoperative by hurricane Maria in 2017. Installation of 13 new Vestas V100-2.0 MW wind turbines started in 2022 with COD achieved in March 2024.
For more information, contact:
Investor Relations
Polaris Renewable Energy Inc.
Phone: +1 647-245-7199
Email: info@PolarisREI.com
Cautionary Statements
This press release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the timing and amount of purchases of Shares, if any, made under the NCIB, as well as the benefits of such purchases, including providing flexibility to the Company in managing its capital position. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, the inability of the Company to pay for any Shares it wishes to purchase, the price of the Shares purchased or the affect that any such purchases have on the Company's capital position, all of which may be affected by such factors as general business, economic, competitive, political and social uncertainties; the actual results of current geothermal, solar and hydro energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal and hydro power industries; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully, and readers of this press release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this press release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this press release, including such forward-looking information, is made as of the date of this press release and, other than as required by applicable securities laws, Polaris assumes no obligation to update or revise such information to reflect new events or circumstances.
SOURCE: Polaris Renewable Energy Inc.
View the original press release on ACCESS Newswire
FAQ
What is the capacity and location of the Punta Lima Wind Farm acquired by Polaris?
How much did Polaris pay for the Punta Lima Wind Farm acquisition?
What is the duration of Punta Lima Wind Farm's power purchase agreement with PREPA?
How is the ownership structure arranged between Polaris and Santander for Punta Lima Wind Farm?
