TORONTO, June 1, 2023
/CNW/ - Westbridge Renewable Energy Corporation (TSXV: WEB)
(OTCQX: WEGYF) (FRA: PUQ) ("Westbridge", "Westbridge Renewable"
or the "Company") is pleased to announce that it has entered
into definitive agreements entered into on June 1st 2023 in connection with the
purchase by Metka-EGN Ltd. ("Metka") (a subsidiary of
MYTILINEOS Energy & Metals (RIC: MYTr.AT, Bloomberg: MYTIL.GA,
ADR: MYTHY US) ("MYTILINEOS")) of a portfolio of 5 solar
projects located in Alberta,
Canada (the "Projects"), from Westbridge, with anticipated aggregate
capacity of 1,410 MWdc (1.4 GW) upon commercial operation
(the "Transaction").
The Transaction is to be completed by way of a share purchase by
Metka of all of the issued and outstanding shares of the following
subsidiaries of Westbridge:
Georgetown Solar Inc. ("Georgetown"), Sunnynook Solar Energy Inc.
("Sunnynook"), Dolcy Solar Inc. ("Dolcy"), Eastervale
Solar Inc. ("Eastervale"), and Red Willow Solar Inc.
("Red Willow"),
(collectively, the "SPVs"). Westbridge will retain ownership of the SPVs
and continue to lead the development of the Projects until closing,
which is subject to certain conditions, including regulatory
approvals.
The Projects
The Projects under development by each of the SPVs are comprised
of the following:
- 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.
It is anticipated that upon entering into operation, the
Projects will:
- Generate 2.1 terawatt-hours (TWh) per year of renewable energy,
equivalent to the electricity necessary to provide power to 200,000
Canadian homes for one year, or eliminating 330,000 cars from the
road for one year, and avoiding the annual emission of 1,500,000
tons of carbon pollution to the atmosphere;
- Have a total estimated capex investment of CAD$1.7 billion (excluding BESS equipment), which
will be disbursed (except for the advance payment) in the various
phases of project development and construction, with expected
completion in 2026-2027. The capex investment is expected to be
equally distributed over a period of 4 years.
- The two most advanced Projects, Georgetown and Sunnynook (approximately 510
MW) are expected to reach "ready-to-build" ("RTB") status by
the end of this year, while the remaining three Projects
(approximately 800 MW) are in advanced development status with RTB
expected 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
("BESS"), with a total anticipated combined storage capacity
of 1,200 MWh for the total portfolio.
Summary of the Transaction
The purchase price in respect of each SPV is based on the
relevant Project's actually installed maximum solar PV direct
current capacity and is subject to standard working capital and
indebtedness adjustments and adjustments in the event
interconnection costs exceed estimates. As of the date hereof, the
aggregate purchase price, payable in cash, in respect of all of the
Projects is estimated to be between CAD$217,000,000 and CAD$346,000,000, subject to the adjustments.
Closing of the purchase and sale of each SPV is conditional
upon, among other things: obtaining approval of the purchase
and sale by Westbridge
shareholders and the TSX Venture Exchange ("TSXV"), and
obtaining regulatory approvals from the Alberta Utilities
Commission ("AUC").
This transaction is arms length and no finders fees are being
paid in conjunction with the Transaction. Shares in Westbridge are currently halted and will
remain halted until further notice.
Westbridge's Strategic
Rationale
Today's announcement marks the first portfolio monetization for
Westbridge, demonstrating its
proven and effective business model. This extraordinary achievement
was realized within two years of the company's reverse take-over
("RTO") listing in June
2021.
The sale of the current Alberta
portfolio underscores the Westbridge team's meticulous planning,
diligent execution, and deep understanding of market dynamics.
Westbridge recognized the strong
potential of Alberta to become a
significant jurisdiction for solar development. By garnering
critical mass in the province and partnering with MYTILINEOS,
Westbridge has demonstrated its
value and will play an important role in Canada's transition to net-zero.
Looking ahead, Westbridge
remains steadfast in its commitment to delivering value and
fostering innovation. As it builds upon its track record, the
company will continue to advance its portfolio, originate new
opportunities, and forge strategic partnerships that will further
reinforce the Company's position as a market leader.
MYTILINEOS' Strategic Rationale
This is the first transaction of MYTILINEOS in North America, following its international
strategy to seek opportunities in countries and areas with high
commercial interest and business-friendly environments. Notably,
Canada recently announced the
Clean Technology Investment Tax Credit and Clean Electricity
Investment Tax Credit which may provide a refundable tax credit of
up to 30% on the eligible capex of certain energy generation
projects produced from renewable sources to support the Green
Transition in all Canadian provinces. The capex investment for the
Projects includes this 30% tax credit from the Canadian
government (up to CAD$430 million
based on the estimated eligible capex of the projects).
Moreover, the selection of Alberta has been the obvious choice for
Mytilineos, as the area has some of the highest irradiation in
Canada, making it an ideal
location for the development of solar projects in the country.
Alberta is one of the fastest
growing renewable energy markets in North
America and has a target, as per its Renewable Electricity
Act, to achieve 30% production from renewable energy sources
("RES") by 2030. In MYTILINEOS' view, the Province of
Alberta has established a
streamlined permitting process which favours appropriate planning
and predictability.
MYTILINEOS strategically entered the renewables market more than
8 years ago and is now considered a top integrated developer
worldwide in the whole range of solar, storage and wind projects.
Its global RES portfolio consists of 10.5 GW of projects in
different jurisdictions (in Europe, Asia,
South America, and North America) and various stages of
development. Upon completion of the Transaction, total capacity of
its global RES portfolio is anticipated to exceed 11.9 GW.
Commenting on the Transaction, Stefano
Romanin, CEO and Director of Westbridge Renewable
commented,
"We are thrilled to announce the definitive
sale agreements for our Alberta
portfolio, which not only proves our business model, but solidifies
the value of our entire platform.
I would like to thank our team for their hard
work and dedication, resulting in our status as one of the largest
solar PV developers in Canada
within two years of our RTO, and attracting a multinational
investor like MYTILINEOS to acquire, construct, and operate
the projects. To the team at MYTILINEOS, we are grateful and
confident in your trust."
Today's announcement indicates a high level
of confidence in the quality and consistency of our work, and we
look forward to driving value for our shareholders as we continue
to execute our business model and strategy. We look forward to
advancing our existing pipeline and originating and acquiring
projects in markets where we see significant opportunities for
advancement."
Chairman and CEO of MYTILINEOS, Evangelos Mytilineos, said:
"It is with great satisfaction and pleasure
to announce the acquisition of a package of five solar projects in
the province of Alberta Canada,
with an aggregate anticipated capacity of 1,410 MW, from
Westbridge, with whom we had
extensive, yet fruitful and positive negotiations.
True to its policy of expanding its
Renewables business internationally, 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 in the history of
MYTILINEOS.
A last note of thanks to the Management and
Board of Westbridge Renewable for their positive
approach and leadership, and to the management and executives of
MYTILINEOS Energy Business Unit (and especially its Sub-Unit M
Renewables) as well as the Treasury and Strategy and M & A
units for closing this landmark deal for
MYTILINEOS".
MYTILINEOS Energy & Metals
MYTILINEOS Energy & Metals, founded in Greece in 1990, is an industrial and energy
multinational company, listed on the Athens Stock Exchange, with a
consolidated turnover of €6.3 billion and EBITDA of €823 million
and employs more than 5,442 direct and indirect employees in
Greece and abroad. Through the
Energy Sector, the company is strategically positioned at the
forefront of the energy transition as an integrated "green"
utility, while through the Metallurgy Sector the Company is
establishing as a benchmark for competitive "green" metallurgy in
the European landscape. Focused on sustainability, it has set a
target to reduce CO2 emissions by at least 30% by 2030 and achieve
by 2050 net zero carbon footprint in all its operations in
accordance with ESG criteria for Environment, Society and
Governance.
For more information, please visit: www.mytilineos.gr | Facebook
| Twitter | YouTube | LinkedIn
Westbridge Renewable Energy Corp.
Westbridge Renewable Energy Corp. develops best-in-class,
utility-scale solar PV projects. Westbridge has a portfolio of projects in
three key jurisdictions, Canada,
the U.S., and the UK. Westbridge
plans to deliver attractive, long-term returns by originating,
executing, and developing an international portfolio of renewable
assets for investors and utilities. Management has a strong
track-record with 40+ projects developed worldwide, obtaining, and
executing permits on time and within budget. As one of the very few
listed pure-play Canadian solar development companies, Westbridge provides its ESG minded investors
with valuable access to greenfield solar projects. This means
Westbridge can invest at the
earliest stage of solar energy development benefiting from the full
value chain as well as the expected wider adoption of renewable
energy going forward. Westbridge
brings together regulators, corporate buyers, and landowners with
the goal of delivering clean, sustainable electricity to end
users.
For more information, please visit: www.westbridge.energy |
Twitter | LinkedIn
Forward-Looking Statements
Certain information set forth in this press release contains
forward-looking information and statements including, without
limitation, anticipated satisfaction of the conditions to close the
Transaction (including achieving RTB status) and the timing
thereof, power plant and BESS permitting, construction, capital
expenditures, commercialization, Project qualification for
investment tax credits, electricity capacities, and management's
business strategy and assessment of future plans and operations
generally. Such forward-looking statements or information are
provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project", "potential" or
similar words suggesting future outcomes or statements regarding
future performance and outlook. Readers are cautioned that
assumptions used in the preparation of such information may prove
to be incorrect. Events or circumstances may cause actual results
to differ materially from those predicted as a result of numerous
known and unknown risks, uncertainties and other factors, many of
which are beyond the control of Westbridge. Although Westbridge believes that the expectations
reflected in these forward-looking statements are reasonable, undue
reliance should not be placed on them as actual results may differ
materially from the forward-looking statements. Factors that could
cause the actual results to differ materially from those in
forward-looking statements include, but are not limited to, the
inability to satisfy the conditions to closing the Transaction
(including obtaining TSXV, AUC, and AESO approvals and achieving
RTB status within anticipated timeframes), regulatory and
permitting risks, changes in laws, market risks, operating history
and competition. The forward-looking statements contained in this
press release are made as of the date hereof, and neither
MYTILINEOS nor Westbridge
undertakes any obligation to update publicly or revise any
forward-looking statements or information, except as required by
law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Westbridge Renewable Energy Corp.