Algonquin Power Plots $9.4 Billion in Spending Through 2025, Focusing on Wind, Solar
Researched by Industrial Info Resources (Sugar Land, Texas)--Algonquin Power & Utilities Corporation (NYSE:AQN) (Oakville, Ontario), an energy generation, transmission and distribution utility serving the U.S. and Canada, emerged from a difficult 2020 with higher revenues and earnings, and is mapping out $9.4 billion of capital expenditures from 2021 through 2025. The company had about 1,600 megawatts (MW) of renewable energy projects under construction in 2020. Industrial Info is tracking about $2.4 billion in active projects from Algonquin and its subsidiaries, more than 80% of which is attributed to wind-energy development.
Liberty Utilities, the U.S.-focused subsidiary of Algonquin, is planning 600 MW of wind-energy development in southwestern Missouri and southeastern Kansas. These projects include the $200 million North Fork Ridge Windfarm in Liberal, Missouri, and the $200 million Kings Point Ridge Windfarm in Golden City, Missouri, each of which is expected to generate 150 MW from 60 Vestas turbines. The Missouri Public Service Commission approved both projects in the summer of 2019, and the first turbine at North Fork Ridge went up last May. For more information, see Industrial Info's reports on the North Fork Ridge and Kings Point Ridge projects.
Algonquin also is proposing a $21 million solar-generating station in Asbury, Missouri, which would generate 10 MW from silicon photovoltaic (PV) panels. Liberty Utilities is seeking permits for the project, which could begin construction in the third quarter. For more information, see Industrial Info's project report.
The wind- and solar-generated energy would help to replace the power generated from Algonquin's last owned and operated coal plant, the Asbury Power Station in Asbury, which closed its doors in March 2020. The facility is undergoing a $30 million dismantlement and demolition, as well as a $60 million ash pond closure. The facility's retirement is expected to reduce annual CO2 emissions by 905,000 metric tons. For more information, see Industrial Info's reports on the demolition and ash pond closure.
Other solar projects include the $110 million Phase II project at the Shady Oaks Windfarm in Compton, Illinois, which would generate 118 MW from 22 Siemens turbines. Algonquin recently awarded Infrastructure and Energy Alternatives Incorporated (IEA) (NASDAQ:IEA) (Indianapolis, Indiana) an engineering, procurement and construction (EPC) contract for the project; for more information, see Industrial Info's project report, and February 25, 2021, article - IEA Revs Up EPC Portfolio with $4.7 Billion in Wind, Solar Projects as Demand Grows.
Algonquin also announced an agreement with Chevron Corporation (NYSE:CVX) (San Ramon, California) to co-develop renewable-energy projects for Chevron worldwide. The oil and gas giant plans to generate more than 500 MW of its existing and future electricity demand from renewable sources. Within the U.S., the projects focus on powering Chevron's operations in the Permian Basin.
Liberty Power, the other major subsidiary of Algonquin, is preparing to begin construction on the $250 million Blue Hills Windfarm near Herbert, Saskatchewan. The facility is designed to generate 177 MW from 77 Siemens Gamesa turbines. Algonquin recently signed a construction loan for the project, which is slated to kick off in the fourth quarter. For more information, see Industrial Info's project report.
In Michigan, Liberty Power is seeking permits for the estimated $135 million Deerfield Wind Energy expansion project in Kinde, which is on the southern edge of Detroit. The project would add 112 MW to the existing 150-MW facility, through the addition of 21 Vestas turbines. It received a significant boost in December, when the Huron Township Planning Commission voted to accept the proposed expansion, although construction is not expected to begin until the spring of 2022 at the earliest. For more information, see Industrial Info's project report.
Algonquin reported revenues of $1.68 billion for 2020, a 3.1% increase from 2019. Net earnings were reported to be $782.5 million, a 47.4% increase from the previous year.