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Hong Kong's CK Group buys first Canadian renewable power project

· 02/04/2021 19:09
Hong Kong's CK Group buys first Canadian renewable power project

By Nia Williams

- Canadian Power Holdings, a wholly owned unit of Hong Kong-based CK Group, has agreed to buy two wind farms in British Columbia, the company said on Thursday, its first purchase of a Canadian renewables project.

Canadian Power did not disclose the value of the purchase from InStarAGF Asset Management, citing confidentiality, but a source with knowledge of the transaction said it was over C$100 million ($78 million).

CK Group is part of the empire founded by Hong Kong tycoon Li Ka-shing and now run by his son Victor Li.

Canadian Power chief executive Derek Goodmanson told Reuters the company, which also owns cogeneration power units, is actively seeking further renewables acquisitions across Canada.

"We look forward to finding other such opportunities for the group as we work to expand our footprint," he said.

The two wind farms will be known as Okanagan Wind and have a combined capacity of 30 megawatts. All electricity generated by the project is sold under an inflation-linked electricity purchase agreement with British Columbia Hydro and Power Authority that has 37 years remaining.

CK Group also holds a large stake in Canadian oil and gas producer Cenovus Energy CVE.TO after its merger with rival Husky Energy, and owns a number of other renewables projects around the world.

($1 = 1.2815 Canadian dollars)

(Reporting by Nia Williams; editing by Richard Pullin)

((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: nia.williams.thomsonreuters.com@reuters.net))