Polaris Renewable Energy Inc., a prominent Canadian company in the renewable energy sector, has announced a crucial step in its expansion strategy by signing a Capital Contribution Agreement with Punta Lima Wind Farm LLC, a subsidiary of Santander Bank N.A. This agreement represents a milestone for Polaris, facilitating the integration of wind energy into its already diverse portfolio of energy generation. The Punta Lima wind farm, located in Naguabo, Puerto Rico, has a production capacity of 26 MW and a 20-year power purchase agreement with the Puerto Rico Electric Power Authority, valid until March 2044.
The transaction is subject to customary closing conditions, such as local regulatory approval, and the signing of a Limited Partnership Agreement. Polaris will invest $20 million of its own funds in this project, which is expected to be completed in the next 90 days, accommodating working capital requirements.
Marc Murnaghan, President and CEO of Polaris, emphasized that this strategic development not only expands the company’s presence in a new jurisdiction, but also adds a new source of renewable energy to its already solid generation mix. Additionally, Murnaghan highlighted the possibility of integrating energy storage solutions to optimize supply and stabilize the grid on the island, as well as exploring new opportunities in Puerto Rico, where energy demand continues to rise.
On the other hand, Nuno Andrade, Head of Global Debt Financing US at Santander Corporate & Investment Banking, expressed the bank’s satisfaction in rehabilitating Punta Lima and in its partnership with Polaris, contributing to the advancement of clean energy on the island.
Polaris Renewable Energy Inc., currently operating in five Latin American countries, has geothermal, hydroelectric, and solar power plants. With this acquisition, the company intensifies its efforts to diversify and increase its sustainable generation capacity. Meanwhile, Santander Bank strengthens its position as a bank actively supporting clean energy projects in different regions, consolidating its global reputation for its commitment to sustainable economic development.
via: MiMub in Spanish
