Innergex Renewable Energy (Innergex) along with Hydro-Québec has formed a strategic alliance to invest in renewable energy projects.

The companies will make investments in wind and solar, battery storage or transmission, distributed generation projects, off-grid renewable energy networks, and other areas.

The partnership is aimed at leveraging the combined expertise of both companies in renewable energy to strengthen their presence internationally.

Hydro-Québec has also made an initial commitment of CAD500m ($376.3m) to the strategic alliance that will be entirely dedicated to co-investment projects with Innergex.

Hydro-Québec has invested $497.4m and acquired 19.9% stakes in Innergex

To finance Innergex’s development and acquisition portfolio, Hydro-Québec has invested CAD661m ($497.4m) in Innergex through a private placement of 34.6 million of Innergex common shares at CAD19.08 ($14.35) per share.

Hydro Quebec has agreed not to increase its stakes in the outstanding common shares of Innergex above 19.9% for a period of 24 months.

Innergex is planning to use about CAD50m ($37.6m) of the proceeds from the private placement to finance the development of its 200MW Hillcrest solar project in Brown County, Ohio.

Furthermore, Innergex is also planning to allot CAD70m ($52.6m) of the proceeds to fund its acquisition of 125MW of solar panels to enable around 650MW of projects to qualify for the 30% US federal investment tax credit.

About CAD275m ($206.9m) will be used to fund equity requirements for the potential purchase of two projects in the US and Chile.

Innergex said that the remaining proceeds of CAD266m ($200.2m) and any other remaining proceeds will be used to finance the working capital requirements and pay back the outstanding debts.

In December last year, Innergex signed a long-term PPA with a US-based corporate organisation to sell the energy generated from its Hillcrest solar project.

Located on nearly 2,100 acres of existing pasture and agricultural land in Green Township, part of Brown County, the solar project will generate enough clean energy to be supplied to more than 50,000 Texan households.