Quebec invests half a mini-milliard in Innergex to “help Hydro-Québec”

The Quebec government takes shares in the production of green energy when Hydro-Québec is launching its vast growth plan. According to two government sources, the Council of Ministers will announce, on Wednesday, an investment of half a billion dollars in the Quebec company Innergex.

Québec has never bet so much money in a business. The commitment of $ 500 million ($ 100 million in ordinary shares and $ 400 million in privileged shares) joins the largest of the Legault government like Nemaska ($ 775 million) and Northvolt ($ 507 million) which had benefited from several aids.

According to our information, the decree of the Council of Ministers was adopted on July 16. It will be published in the official Gazette on Wednesday morning.

A source in the government considers that investment in Innergex is without risk and guarantees yields for Quebec, since Hydro-Québec must conclude many contracts to increase its electricity production and carry out its action plan by 2035.

Who is Innergex?

The company in which Quebec has been active for over 30 years in the province. Its head office is in Longueuil and it produces wind, solar energy and small hydroelectricity.

In the past few weeks, the Quebec deposit and placement fund has spent $ 9 billion to buy Innergex (including $ 3 billion in shares and $ 6 billion in reinvestment), because it was the subject of a hostile purchase offer from American interests.

The Caisse then sold some shares to private shareholders (including the CEO of Innergex Michel Letellier) and now part of the Quebec state.

We are now more Quebecois than everwas delighted the CEO of Innergex, Michel Letellier, when contacted by Radio-Canada.

His company is present in four countries (Canada, United States, Chile and France) and employs more than 600 people. She has around thirty development projects, including a 250 megawatts wind farm in Coaticook and 300 MW on the North Shore, with the Aboriginal community in Passamit.

In Canada, it holds 35 small hydroelectric power plants, the largest of which is in British Columbia. She owns it in Quebec, especially on the Magpie river and the Portneuf river.

Innergex also has nine wind farms, especially in Gaspésie, and some solar power plants, in Ontario.

An investment to help Hydro-Québec

Contacted by Radio-Canada, the cabinet of the Minister of Economy, Innovation and Energy Christine Fréchette justifies her choice: Our government is investing in a company here. With other partners, we acquire Innergex, a Quebec company specializing in renewable energies.

Innergex remains in the hands of Quebec interests, will participate in the development of our green energy and will help Hydro-Québec to carry out the largest energy project in our history.

“This acquisition will allow Innergex to remain a Quebec leader in the renewable energies sector and will contribute to the energy sovereignty of Quebec by locally controlling critical infrastructure in renewable energies”, writes by email the Ministry of the Economy.

It is an important signal from the government on its desire to protect its strategic industries and to secure the energy production capacity necessary for its transport electrification policy.

Hydro-Québec, which held nearly 20 % of Innergex, abandoned its participation in the company by selling its actions at the checkout for $ 556 million. According to our sources, the Crown corporation wanted to avoid being in a delicate position by giving contracts to Innergex while being its co -owner.

It’s very disconcertingreacts the holder of the energy sector management chair in HEC Montréal, Pierre-Olivier Pineau. Hydro-Québec received 556 million and the government will present 500 million. I do not understand the global strategy that seems to be improvised.

Mr. Pineau recognizes, however, that the investment is not very risky since the long -term contracts given to wind producers guarantee them the purchase of all their production and therefore an income.

With the new energy law, adopted by Bâillon this spring, Hydro-Québec now has the right to sign over-the-counter supply contracts, without tenders. The energy management must however approve them.

Hydro-Québec announced last year that it was going to take control of wind development and become prime contractor for major projects.

In addition to Innergex, the cash register also has shares in other wind turbines like 52.4 % of Invenergy and 15.27 % (larger shareholder) in Borax.