SunEdison Inc (OTCMKTS:SUNEQ) sold off the development rights of a wind power project in Maine. Pattern Energy Group LP announced Wednesday that it bought the rights to the proposed 600 megawatt (MW) King Pine Wind power project. It is currently under development in the Aroostook and Penobscot Counties.
SunEdison Inc Sells Rights to Pattern Energy
SunEdison’s asset sale continued Wednesday as it sold an in-development wind project to Pattern Energy. As part of its bankruptcy proceedings, SunEdison has been selling off its global assets to energy firms.
Located in the northeastern region of Maine, the King Pine Wind project will use 1744 turbines. It will interconnect to the ISO New England at Emera Maine’s proposed 345-kV Hammond substation.
The completion of the construction project is scheduled for 2018. It’s projected to reach full commercial capacity and operation two years later.
Pattern Energy will now have the right of first offer pertaining to any power project that Pattern Development chooses to sell.
“We are excited about the opportunity to expand our previous activities in Maine by taking over development of the state’s largest wind power project,” said Mike Garland, President and CEO of Pattern Development, in a statement. “Maine is an extraordinary place and we have been working for years to find a great project that can be developed in a manner that is respectful of the local community and the environment.”
Garland added that the wind project would create a new source of revenue for the state and the local communities. He stated that King Pine would create new jobs and offer residents clean energy.
“Maine is an extraordinary place and we have been working for years to find a great project that can be developed in a manner that is respectful of the local community and the environment,” he said.
The deal was first reported late last month. Reports suggested that Pattern would pay the bankrupt solar firm $13.5 million and another $13 million at closing for the purchase.
SunEdison Inc Seeks Approval for Sale
This week, SunEdison filed a motion with the U.S. Bankruptcy Court for the authorization and approval of the sale of its equity interests.
The motion seeks the OK from the court for the sale of its stake in Imperial Valley Solar 3, Imperial Valley Solar 4 and Sun Lake Solar. SunEdison is also looking for the go ahead for specific releases in connection with these equity interests.
According to the court filing, the interconnection rights to this project has a capacity of 245 MW photovoltaic energy and has a gross purchase price of $24 million.
Here is a passage from the motion:
“The Debtors are not seeking to further market the Equity Interests prior to the Sale Hearing. The Buyer is intimately familiar with the Subsidiaries and the Project, due to 8ME’s ownership of all of the Project’s assets and rights other than the interconnection rights held by the Subsidiaries, and its longstanding involvement with the development of the Project. Another party unfamiliar with the Project simply would not be able to conduct due diligence, negotiate necessary project documents, negotiate a resolution of the JDA Dispute, and close the sale of the Equity Interests in time to prevent the estate from losing substantial value as a result of the expiration of the interconnection rights.”
It was announced in early June that SunEdison tapped Rothschild to be in charge of the sale of its massive portfolio of assets. With $20 billion in assets and $16 billion in liabilities, SunEdison is trying to restructure the company and walk on stable ground once again.