MONTREAL -- Boralex Inc.  has signed a binding agreement to sell its five U.S. wood-residue power stations with a total installed capacity of 186 MW to ReEnergy Holdings LLC for approximately US $93 million. 

Boralex said it would invest the proceeds of the sale to ReEnergy Holdings in new renewable energy projects with long-term contracts in Canada and Europe, primarily in the wind, hydroelectric and solar segments.

"We have concluded that, at this stage in our development, this transaction provides Boralex with the best opportunity to pursue its growth objectives in the other areas of the renewable energy market," said Patrick Lemaire, president and CEO.

ReEnergy Holdings, based in Albany, NY, has agreed to acquire the following primarily-wood based powered facilities from Boralex: a 40-megawatt facility in Ashland, ME; a 36-megawatt facility in Fort Fairfield, ME; a 40-megawatt facility in Livermore Falls, ME; a 50-megawatt facility in Stratton, ME; and a 20-megawatt facility in Chateaugay, NY. .

Larry Richardson, CEO of ReEnergy Holdings, said, “This acquisition is a significant step in our strategy to build an integrated solid fuel renewable energy facilities company in the U.S."

ReEnergy Holdings purchased a wood-fired power plant in Lyonsdale, NY, in spring and also operates three other facilities in the Northeast.