Tahltan Nation Makes Largest Clean Energy Investment by a First Nation in BC History

Source Press Release
Company Axium Infrastructure Inc.AltaGas Ltd.Manulife Financial 
Tags Asset Deals, Deals, Geothermal, Power
Date July 29, 2019

The Tahltan Nation – located in Northwest British Columbia and comprising the communities of Iskut, Dease Lake and Telegraph Creek – has made the largest clean energy investment by a First Nation in British Columbia’s history, and one of the largest clean energy investments by a First Nation in Canadian history.

The Tahltan Nation announced today that it has purchased five per cent – from Axium and Manulife – of the Northwest British Columbia Hydro Electric Facilities, comprising three run-of-the-river projects: Forrest Kerr, McLymont Creek and Volcano Creek, located in Tahltan Territory.

Today’s announcement marks an important milestone for the Tahltan Nation as it continues to move towards its goal of becoming an economically independent and self-sufficient First Nation. In partnering with Axium Infrastructure Canada, Manulife Financial Corporation and AltaGas Canada Inc., the Tahltan Nation is now part owner of a clean energy asset that is valued well over $2.5 billion.

Quotes

“This clean energy deal is another of several recent examples of how the Tahltan Nation continues to carefully use our collective title and rights to empower our people and move towards economic independence. Our continued unity and strength within the Tahltan Nation have paved the way for this historic economic achievement and we are extremely excited to have this significant asset and revenue stream for generations to come.”

– Chad Norman Day, President of the Tahltan Central Government

“I am excited about the opportunities that come with the establishment of a strong partnership with Axium Infrastructure Canada, Manulife Financial Corporation and AltaGas Canada, including vast capacity building for our Nation and communities.”

– Marie Quock, Chief of the Iskut Band

“This clean energy deal is a game-changer and will provide our Nation with an asset that will give back for over 100 years.”

– Rick McLean, Chief of the Tahltan Band

“We welcome the Tahltan Nation’s equity investment in the hydroelectric projects and look forward to our long-term partnership together.”

– Juan Caceres, Vice President and Senior Investment Director, Axium Infrastructure Canada Inc.

“Manulife was delighted to have made our investment in these high-quality renewable energy facilities and are thrilled to have the Tahltan Nation join as a long-term equity partner.”

– Richard Lee, Senior Managing Director – Infrastructure Investments, Manulife Financial Corporation

“We are extremely pleased to have the Tahltan Nation invest in the Northwest BC Hydroelectric Facilities. They have been a great partner on these facilities since the very beginning of the project and we look forward to working even closer with the Tahltan Nation, Axium and Manulife.”

– Jared Green, President and Chief Executive Officer of AltaGas Canada Inc

BACKGROUND INFORMATION

Northwest British Columbia Hydro Electric Facilities

Located in Tahltan Territory, the Facilities are comprised of the 195-megawatt Forrest Kerr Hydroelectric Facility, which achieved commercial operation ("COD") in October 2014, the 16-megawatt Volcano Creek Hydroelectric Facility, which achieved COD in December 2014, and the 66-megawatt McLymont Creek Hydroelectric Facility, which achieved COD on October 1, 2015. The Facilities are underpinned by three separate 60-year, fully indexed electricity purchase agreements with BC Hydro.

The Tahltan Nation originally became equity owners in one of the Facilities in late 2014 when a limited partnership formed by the Tahltan Nation, called Volcano Creek Limited Partnership, purchased a 2.7 per cent interest in the Volcano Creek facility.

In June 2018, AltaGas sold 35 per cent of its interest in the Facilities, to a joint venture company indirectly owned by Axium Infrastructure Canada and Manulife Financial Corporation, for $922 million.

In October 2018, AltaGas transferred a 10 per cent interest in the Facilities to a newly formed subsidiary, AltaGas Canadian Energy Holdings Limited Partnership, a wholly-owned subsidiary of AltaGas Canada Inc., which completed an initial public offering of its shares on October 25, 2018. Following the initial public offering, AltaGas held a minority interest in AltaGas Canada Inc. which operates independently from AltaGas.

In November 2018, following the initial public offering for AltaGas Canada Inc., AltaGas advised the Tahltan Nation that it wished to sell its remaining 55 per cent interest to Axium/Manulife.

In December 2018, the Tahltan Nation reached an agreement with AltaGas on the proposed sale of its remaining 55 per cent interest in the Facilities to Axium/Manulife. One of the many things agreed upon was that the Tahltan Nation would be entitled to purchase up to five per cent interest in the Facilities.

In January 2019 AltaGas announced the sale of its remaining 55 per cent interest to Axium Infrastructure Canada and Manulife Financial Corporation for $1.39 billion.

In July 2019 the Tahltan Nation agreed to purchase five per cent interest for $124.3 million in the Facilities, making it the biggest clean energy investment by a First Nation in British Columbian history, and one of the biggest clean energy investments by a First Nation in Canadian history.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd