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 capacit脿 nominale di 26,0 MW e opera sotto un contratto di acquisto di energia della durata di 20 anni con l'Autorit脿 Elettrica di Porto Rico, che si estende fino a marzo 2044.
La transazione da 20 milioni di dollari 猫 stata strutturata come un accordo di equit脿 fiscale, con Polaris che diventa il gestore e operatore mantenendo un interesse azionario di controllo, mentre Santander conserva una posizione di equit脿 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 opportunit脿 per implementare soluzioni di stoccaggio energetico e fornire servizi di stabilizzazione della rete, mentre esplora ulteriori opportunit脿 strategiche nel settore energetico di Porto Rico.
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Este movimiento estrat茅gico ampl铆a la presencia geogr谩fica de Polaris y diversifica su mezcla de generaci贸n hacia la energ铆a e贸lica. La empresa ve oportunidades para implementar soluciones de almacenamiento de energ铆a y proporcionar servicios de estabilizaci贸n de la red, mientras explora oportunidades estrat茅gicas adicionales en el sector energ茅tico de Puerto Rico.
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Polaris Renewable Energy a compl茅t茅 l'acquisition de Punta Lima Wind Farm 脿 Porto Rico par le biais d'un Accord de Contribution en Capital Propre avec Santander Bank. Le parc 茅olien a une capacit茅 nominale de 26,0 MW et fonctionne sous un contrat d'achat d'茅lectricit茅 de 20 ans avec l'Autorit茅 de l'脡nergie 脡lectrique de Porto Rico, qui s'茅tend jusqu'en mars 2044.
La transaction de 20 millions de dollars a 茅t茅 structur茅e comme un accord d'茅quit茅 fiscale, Polaris devenant le gestionnaire et l'op茅rateur tout en maintenant un int茅r锚t en capital de contr么le, et Santander conservant une position d'茅quit茅 fiscale. L'acquisition a n茅cessit茅 l'approbation des organismes de r茅glementation locaux et l'ex茅cution de l'Accord.
Ce mouvement strat茅gique 茅largit la pr茅sence g茅ographique de Polaris et diversifie son mix de production vers l'茅nergie 茅olienne. L'entreprise voit des opportunit茅s pour mettre en 艙uvre des solutions de stockage d'茅nergie et fournir des services de stabilisation du r茅seau, tout en explorant d'autres opportunit茅s strat茅giques dans le secteur 茅nerg茅tique de Porto Rico.
Polaris Renewable Energy hat die 脺bernahme 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-j盲hrigen Stromabnahmevertrag mit der Puerto Rico Electric Power Authority, der bis M盲rz 2044 l盲uft.
Die Transaktion 眉ber 20 Millionen Dollar wurde als Steuer-Eigenkapitalgesch盲ft strukturiert, wobei Polaris der Manager und Betreiber wird und ein kontrollierendes Eigenkapitalinteresse beh盲lt, w盲hrend Santander eine Steuer-Eigenkapitalposition einnimmt. Die 脺bernahme erforderte die Genehmigung der lokalen Regulierungsbeh枚rden und die Ausf眉hrung des Vertrages.
Dieser strategische Schritt erweitert die geografische Pr盲senz von Polaris und diversifiziert ihren Erzeugungsmix in Richtung Windenergie. Das Unternehmen sieht M枚glichkeiten zur Implementierung von Energiespeicherl枚sungen und zur Bereitstellung von Netzstabilisierungsdiensten, w盲hrend es zus盲tzliche strategische M枚glichkeiten 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 / / 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: [email protected]
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.
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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?
