Mitsui has signed an agreement to sell its entire interest (30%) in C2C Power, which has an enterprise value of around C$1.9bn ($1.46bn), to portfolio management firm Axium Infrastructure.

C2C Power owns and operates 12 wind and solar power plants located in Ontario, British Columbia and other provinces in Canada. The projects, with a combined generation capacity of 679MW, commenced operations between 2007 and 2014.

The sale forms part of Mitsui’s business plan

The stake sale is a part of Mitsui’s business plan for the fiscal 2019/2020 that includes strategic asset recycling program, which aims to enhance its financial base.

Mitsui owns its stake in C2C Power project through its investment company MIT Renewable.

Earlier, MIT Renewable had signed the purchase and sale agreement with a new limited partnership led by Axium.

The transaction, which is expected to complete in March 2020, is subject to regulatory approval and process under existing shareholders’ agreement where they are entitled to first refusal.

Mitsui said in a statement: “In Mitsui’s business plan for the fiscal year ending in March 2020 announced on April 26 of this year, Mitsui states that cash flow focused management/strengthening of the financial base continues to be one of its key initiatives.”

In September 2019, Avangrid Renewables signed a deal to sell a 50% stake in wind and solar projects in Arizona to Axium Infrastructure for a total combined amount of $112m (£89.95m).

The two Arizona projects, which include the 65.1MW Dry Lake II wind farm project and the 20MW Copper Crossing solar project, are under long-term output contract with Salt River Project (SRP). The projects are developed, owned and operated by Avangrid Renewables.

Located in Snowflake, the Dry Lake II wind farm facility features 31 Suzlon S88 wind turbines. The wind park had begun commercial operations in 2010.

The Copper Crossing solar project, featuring 66,000 photovoltaic modules, is built in Florence. The facility had entered into commercial operation in 2011.