Port of Argentia and Pattern Energy agree on renewable energy to green fuels project
Newfoundland-based Port of Argentia and American renewable energy company Pattern Energy have entered into an agreement for the planned wind energy to ammonia project at Argentia.
On 5 June, the Port of Argentia announced it had reached a binding agreement on commercial terms with Pattern Energy for the renewable energy to green fuels project.
Argential Capital Inc. (ACI), the port’s 50/50 partnership with publicly traded investment issuer Torrent Capital, is a signatory to the agreement.
Key commercial terms include land lease rates at the port, priority berthing charges, and a wind royalty on electricity sales. The agreement also includes commercial terms for ACI to co-invest in the renewable project as a Limited Partner as well as receive a gross revenue royalty on ammonia sales.
Genny Picco, Port Board Chairperson said that the agreement on Pattern’s wind energy to ammonia project will generate significant wealth, business opportunities and employment for the region for decades. “Pattern Energy is proving to be an ideal development partner and we are excited about the benefits this project will bring in the years to come”, Picco said.
According to Scott Penney, CEO of Port of Argentia, Pattern Energy is taking a lease option on some 6,000 acres of industrial and forest lands owned by the port. In case the option is exercised and Pattern Energy proceeds with the project, it will construct a 300-megawatt wind energy facility designed to power the production of green ammonia for export to global markets.
Wade Dawe, President and CEO of Torrent Capital, said: “ACI is executing on its strategy of working with the Port to capture revenue streams from third-party equity and royalty opportunities. As a partner in ACI, Torrent will take the lead in raising the capital necessary for ACI to exercise its co-investment right in the renewables project.”