Travelers Capital Corporation has successfully arranged CAD$61 million of non-recourse project financing for Box Canyon Hydro Corporation (BCHC), an affiliate of Elemental Energy Inc. which owns the 16 MW run-of-river hydro project located approximately 10.5 km northeast of Port Mellon, British Columbia, Canada.
The project was developed by Elemental Energy, a Vancouver based renewable energy investor and developer and Sound Energy Inc. The project will use the waters of Box Canyon Creek, Marty Creek and Cascara Creek to generate and sell 100% of their output to British Columbia Hydro and Power Authority under a 40-year electricity purchase agreement.
The non-recourse project financing was structured and arranged by Travelers Capital Corporation (TCC), acting as loan agent and security agent, and was funded by Industrial Alliance Insurance and Financial Services Inc. and Desjardins Financial Security Life Assurance Company.
Mark Bohn, Managing Partner of Travelers Capital Corporation, stated:
Travelers Capital is delighted to have been selected to arrange the construction and long term financing for this unique project and support our client's long term vision in the renewable energy sector with their first hydro project investment in Canada.
Jamie Houssian, Principal of Elemental Energy Inc., commented:
With Box Canyon reaching financial close and entering the construction phase, Elemental Energy has taken an important step towards our vision of building a strong portfolio of renewable energy projects.