Canadian firm Fengate Real Asset Investments has formed a development partnership with Greengate Power Corporation, a clean energy company based in Alberta, with a view to expanding its portfolio of wind and solar assets across North America.
Fengate has committed C$100 million ($78.2 million; €63.9 million) over the next few years to help fund a 1GW pipeline of clean energy projects Greengate is planning to build. Most of the projects are in the late-stage of development, according to Andrew Cogan, Fengate’s managing director for infrastructure investments.
He told Infrastructure Investor that Fengate’s move to invest in earlier stages of a project’s life cycle is a “prudent extension of our strategy”. He said investing in development-stage projects may mean more risks, but that is offset by “leveraging the deep expertise of Greengate”.
Founded in 2007, Greengate has developed 480MW of clean energy projects in Alberta and Ontario. The company said it’s seeking to take advantage of a goal the Alberta government has set to procure 5GW of clean energy capacity by 2030. The government is planning to auction 700MW of clean energy contracts in 2018, following the award of 600MW in 2017.
Cogan said the development partnership has plans to expand beyond Alberta, across Canada and eventually into the US.
Fengate, which has committed $2.8 billion to infrastructure, private equity and real estate, has invested in a handful of clean energy projects over the years, but has only acquired operating assets.
Last June, it acquired an interest in a 40MW wind farm in Southern Ontario, and in June 2016 it acquired a 25 percent interest in a 120MW wind project in New Mexico. Its renewable energy portfolio also includes solar, hydro and biomass projects across North America.