Alterra Power

Alterra Power Corp. was a Vancouver-based renewable-energy company that developed, owned, acquired and operated electricity-generation assets. Its portfolio covered run-of-river hydroelectricity, wind power, geothermal generation and solar power, giving the company exposure to several renewable technologies rather than a single generating segment. Its principal geographic activities were in Canada, the United States and Iceland. The company was created in 2011 through the merger of Magma Energy Corp. and Plutonic Power Corp. The transaction combined Magma Energy's geothermal interests, particularly in Iceland and the United States, with Plutonic Power's Canadian hydroelectric and wind-development assets. At formation, the merged business had interests in two geothermal plants in Iceland, a geothermal plant in Nevada, a run-of-river hydroelectric project and a wind farm in British Columbia, as well as an option related to an Ontario solar project. Alterra's Canadian portfolio included the Toba Montrose hydroelectric complex in British Columbia, made up of the East Toba River and Montrose Creek facilities. Together, the plants had a stated installed capacity of 196 MW and operated under a long-term power-purchase arrangement with BC Hydro. The company also advanced the Upper Toba Valley projects, including the 62 MW Jimmie Creek facility, which reached full output in 2016. Its solar expansion included proposed photovoltaic projects in Ontario acquired through an arrangement involving Plutonic Power and GE Energy Financial Services, with construction and operation services to be supplied by First Solar. Alterra's Icelandic geothermal interests were associated with HS Orka. Magma Energy acquired a 98.5% interest in HS Orka in 2010 during Iceland's financial crisis, a transaction that generated public and political opposition but was approved by the Icelandic government. After the 2011 merger, the geothermal business remained part of Alterra's portfolio. By 2016, Alterra held 67% of HS Orka, with Icelandic pension funds holding the remainder. Alterra later sold its HS Orka interest to Macquarie Infrastructure and Real Assets in 2019, after Alterra itself had ceased to exist as an independent company. Innergex Renewable Energy completed its acquisition of Alterra Power on February 6, 2018. The transaction brought Alterra's assets and activities into Innergex and ended Alterra's operation as an independent corporate entity. Accordingly, Alterra is best understood today as a former renewable-energy corporate brand and predecessor platform within Innergex, rather than as a currently independent power producer.

Alterra Power emerged from the consolidation of two Canadian renewable-energy businesses, Magma Energy Corp. and Plutonic Power Corp. The merger was announced on March 7, 2011, and produced a diversified power-generation company under the Alterra Power name. The combination joined Magma's geothermal activities with Plutonic's hydroelectric, wind and prospective solar assets. This structure gave Alterra a development platform spanning several renewable technologies and multiple countries. Before the merger, Magma Energy had built a significant geothermal position in Iceland. In 2010, during the Icelandic financial crisis, Magma acquired 98.5% of HS Orka, an Icelandic geothermal power company. The transaction became controversial in Iceland because of concerns about foreign ownership and control of energy infrastructure. Icelandic singer Björk publicly opposed the acquisition in an open letter published in Reykjavík Grapevine, calling on the government to take steps against the contracts. Despite the opposition, the Icelandic government approved the transaction. The geothermal assets became part of Alterra's international portfolio after the merger. At the time Alterra was formed, the company held interests in two geothermal plants in Iceland and one geothermal plant in Nevada, although the Nevada asset was subsequently sold. Its Canadian assets included a run-of-river hydroelectric plant and a wind farm in British Columbia. The company also had an option related to a solar project in Ontario. Alterra's business model centered on developing, constructing, owning and operating utility-scale renewable projects, rather than selling branded consumer products. The Toba Montrose hydroelectric complex became one of the company's important British Columbia assets. The complex consists of the East Toba River facility, with stated capacity of 123 MW, and the Montrose Creek facility, with stated capacity of 73 MW. The two run-of-river plants are located approximately 18 kilometres apart and have operated since 2010. Their combined installed capacity was reported as 196 MW, with average annual generation of approximately 720 GWh. Electricity from the complex was contracted to BC Hydro through 2045. Alterra also advanced the Upper Toba Valley hydroelectric development north of Powell River, British Columbia. The original plan contemplated two facilities near the headwaters of Toba Inlet, with a combined installed capacity of 124 MW and expected annual generation of 316 GWh. The development included Jimmie Creek, which flows into the Toba River, and a facility on the Upper Toba River. Alterra received an energy purchase agreement from BC Hydro for the Upper Toba facility and obtained another agreement in 2013 for the 62 MW Jimmie Creek project. In 2016, the company reported that Jimmie Creek had reached full output. Solar power was another area of expansion. In early 2011, Plutonic Power and GE Energy Financial Services agreed to purchase three proposed photovoltaic plants in Ontario from First Solar. The projects, located at Amherstburg, Belmont and Walpole, were planned to have a combined capacity of 50 MW. First Solar was expected to provide engineering, procurement, construction and operating services. This represented an extension of the business beyond its established hydroelectric, wind and geothermal activities. Alterra remained active as a diversified renewable-energy company until Innergex Renewable Energy completed its acquisition on February 6, 2018. The transaction included Alterra and all of its assets, bringing the company's portfolio into Innergex. Alterra therefore stopped operating as an independent listed corporate platform. In 2019, the former Alterra interest in HS Orka was sold to Macquarie Infrastructure and Real Assets. The sequence of the acquisition and subsequent asset disposal means that Alterra's historical importance lies in the renewable projects and development capabilities transferred through its corporate succession, rather than in an ongoing standalone brand.

• 2019

  HS Orka interest sold

  [1]Alterra Poweren.wikipedia.org

  Alterra sold its 67% interest in HS Orka to Macquarie Infrastructure and Real Assets.

• 2018

  Innergex completes acquisition

  [1]Alterra Poweren.wikipedia.org

  Innergex Renewable Energy completed its acquisition of Alterra Power, including all of its assets.

• 2016

  Jimmie Creek reaches full output

  [1]Alterra Poweren.wikipedia.org

  The Jimmie Creek hydroelectric facility achieved its full stated output of 62 MW.

• 2013

  BC Hydro agreement for Jimmie Creek

  [1]Alterra Poweren.wikipedia.org

  Alterra received an energy purchase agreement from BC Hydro for the 62 MW Jimmie Creek hydroelectric facility.

• 2011

  Magma Energy and Plutonic Power merge

  [1]Alterra Poweren.wikipedia.org

  The merger created Alterra Power Corp. and combined geothermal, hydroelectric, wind and solar-development interests.

• 2011

  Ontario solar portfolio proposed

  [1]Alterra Poweren.wikipedia.org

  Plutonic Power and GE Energy Financial Services agreed to purchase three proposed photovoltaic projects in Ontario from First Solar, with a planned combined capacity of 50 MW.

• 2010

  Magma Energy acquires a majority interest in HS Orka

  [1]Alterra Poweren.wikipedia.org

  Magma Energy acquired 98.5% of Icelandic geothermal company HS Orka during the Icelandic financial crisis. The transaction later became part of Alterra's corporate history.

Diversified renewable-energy developer, owner and operator focused on utility-scale power-generation assets.

• Run-of-river hydroelectricity · 2010

  Toba Montrose Hydro

  The Toba Montrose complex consists of the East Toba River and Montrose Creek run-of-river hydroelectric facilities in British Columbia. Their stated capacities are 123 MW and 73 MW respectively, for a combined 196 MW. The plants have operated since 2010 and were reported to generate approximately 720 GWh annually under a power-purchase contract with BC Hydro extending to 2045.

• Hydroelectricity · 2016

  Jimmie Creek Hydroelectric Facility

  Jimmie Creek is a 62 MW hydroelectric facility in the Upper Toba Valley of British Columbia. Alterra secured an energy purchase agreement with BC Hydro in 2013 and reported that the facility had reached full output in 2016. It formed part of the company's broader Upper Toba Valley development program.

• Hydroelectricity development

  Upper Toba Valley Hydroelectric Project

  The Upper Toba Valley program was planned around two renewable-power facilities near the headwaters of Toba Inlet in British Columbia: Jimmie Creek and an Upper Toba River facility. The planned combined installed capacity was 124 MW, with expected annual generation of 316 GWh. The Jimmie Creek component was developed to 62 MW, while the broader program represented Alterra's expansion of its British Columbia hydroelectric platform.

• Geothermal power

  HS Orka geothermal assets

  HS Orka was the Icelandic geothermal-power company in which Magma Energy acquired a 98.5% interest before the creation of Alterra. After the merger, Alterra held 67% of HS Orka, with Icelandic pension funds holding the balance. The interest was ultimately sold to Macquarie Infrastructure and Real Assets in 2019.

• Solar photovoltaic power · 2011

  Ontario Solar Projects

  The proposed Ontario photovoltaic portfolio comprised projects at Amherstburg, Belmont and Walpole, with planned capacities of 10 MW, 20 MW and 20 MW. The initiative was developed through an arrangement involving Plutonic Power, GE Energy Financial Services and First Solar, which was expected to provide engineering, procurement, construction and operating services.

• Energy infrastructure services · 2011

  Renewable-energy development and operations

  Alterra's principal business offering was the development, acquisition, ownership and operation of utility-scale renewable-energy facilities. Its technology mix included hydroelectric, wind, geothermal and solar generation. The company created value through power-generation assets and associated long-term electricity contracts rather than through consumer-facing products.

• 2010

  Opposition to Magma Energy's HS Orka acquisition

  Magma Energy's purchase of a 98.5% interest in HS Orka generated opposition in Iceland amid concerns over foreign control of a geothermal-energy company during the country's financial crisis. Björk published an open letter calling on the government to revoke the relevant contracts. The government nevertheless approved the transaction.

  Source

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• 2019

  Divest HS Orka interestM&A

  Background

  HS Orka remained an important historical geothermal asset, but Alterra's corporate ownership had already passed to Innergex.

  Action taken

  Alterra sold its 67% stake in HS Orka to Macquarie Infrastructure and Real Assets.

  Aftermath

  The divestment transferred the former Alterra geothermal interest to a new owner and further separated the asset from Alterra's historical portfolio.

  Source

• 2018

  Innergex acquires Alterra PowerM&A

  Background

  Alterra had assembled a diversified renewable-power portfolio, while Innergex sought to expand its renewable-generation platform.

  Action taken

  Innergex Renewable Energy completed the acquisition of Alterra Power and all of its assets on February 6, 2018.

  Aftermath

  Alterra ceased operating as an independent corporate entity, and its assets and activities were integrated into Innergex.

  Source

• 2011

  Merge Magma Energy with Plutonic PowerM&A

  Background

  The two companies held complementary renewable-energy assets and development interests, including geothermal, hydroelectric and wind projects.

  Action taken

  Magma Energy and Plutonic Power combined to form Alterra Power Corp. Magma Energy changed its name to Alterra Power, and Plutonic Power shareholders received 2.38 Magma shares for each Plutonic share held.

  Aftermath

  The merger created a diversified renewable-power platform with operations and projects in Canada, the United States and Iceland.

  Source

• 2011

  Expand into Ontario solar generationStrategy

  Background

  Plutonic Power had primarily been associated with hydroelectric and wind projects, while the proposed Ontario photovoltaic assets offered an entry into solar power.

  Action taken

  Plutonic Power and GE Energy Financial Services agreed to purchase three proposed Ontario solar plants from First Solar, totaling a planned 50 MW.

  Aftermath

  The initiative broadened the combined company's technology portfolio, although the available reference material does not establish the ultimate operating outcome of all three proposed projects.

  Source

1. 1Alterra Poweren.wikipedia.org