RWE is to sell 51% stakes in four US onshore wind farms with a combined capacity of 861MW to a subsidiary of Canadian company Algonquin Power & Utilities Corp.
The total consideration for the projects, which are located in Texas, corresponds to an enterprise value of around $600m (€494m), RWE said.
Two projects – 201MW Stella
(pictured) and 220MW Cranell – are in operation and two – Raymond East (200MW) and West (240MW) – are under construction.
The disposal is part of RWE’s capital rotation programme and the proceeds will be used to finance further growth in the renewable energy business.
Raymond East is due online by the end of the year and West in the first quarter of next year.
RWE sells stake in Texan wind farms for $600 million
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RWE to divest 51% stake in Texas wind farms
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TFSA Contribution Limit: Put the Majority in This Stock
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The Globe and Mail JOEL SCHLESINGER Published December 10, 2020
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Keen investor interest in the renewable energy sector has sent exchange-traded funds that cover it soaring this year.
Several climate-friendly government stimulus programs are driving enthusiasm for green energy ETFs, says Daniel Straus, director of ETF and financial products research at National Bank Financial Inc.
He describes President-elect Joe Biden’s climate-friendly policies, in particular, as a “tailwind behind solar, wind and other green investment.”
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Prices of some pure-play clean energy ETFs have posted triple-digit returns so far this year, with Canadian companies among their top holdings.