10/20/2015 13:37 EDT | Updated 10/20/2016 01:12 EDT

Alterra to buy water rights for ongoing B.C. expansion in hydroelectric capacity

VANCOUVER — Alterra Power Corp. has a deal to buy the water rights for four hydroelectric projects along British Columbia's Toba Valley.

The projects are 20 to 30 kilometres from the Toba Montrose and Jimmie Creek hydroelectric operation that Vancouver-based Alterra is developing about 80 kilometres from Powell River, B.C.

Alterra (TSX:AXY) said it's buying the water rights from Sigma Engineering, a subsidiary of Synex International (TSX:SXI). Financial terms weren't disclosed but the transaction is expected to be completed by the end of 2015.

Each of the projects acquired from Sigma is expected to have between 10 and 15 megawatts of generation capacity, Alterra said.

"Acquiring these projects gives us new expansion options in the Toba Valley where we will be operating nearly 300 megawatts of renewable generation once the Jimmie Creek project begins operating next summer," said Alterra vice-president Jay Sutton.

The Jimmie Creek project will add 62 megawatts of hydroelectric capacity, expected to be complete in the third quarter of 2016.


The Canadian Press