Boralex has signed a binding letter of agreement for the acquisition of a 22MW run-of-the-river hydroelectric project in British Columbia, Canada.

The Sequoia Energy-owned project, expected to generate 70GWh annually to be sold to BC Hydro under a 40-year power purchase agreement.

Overall investment in the project is expected in the region of $60m.

Boralex president and CEO Patrick Lemaire said that this new hydroelectric project would further drive development in British Columbia.

"A permanent Boralex team will be set up in the province to help ramp up growth," he said.

"This acquisition is also a perfect fit with our strategic plan and creates great value from the sale proceeds of our US thermal assets."

Sequoia Energy president and CEO Ron Diduch added: "We value the relationships we have developed in British Columbia and are excited to be working with Boralex, which have a strong track record in developing and maintaining sound relationships."