FFP New Hydro LLC has closed a senior loan facility through Crestline Investors Inc. to develop a portfolio of 21 run-of-river hydropower plants across a five-state area.
The projects will use existing dam infrastructure in Pennsylvania, West Virginia, Indiana, Mississippi and Ohio, the Free Flow Power Corp. subsidiary said, and will have a cumulative output capacity of more than 200 MW when complete. All of the plants will be eligible to receive federal investment tax credits.
"Hydropower is valued by the investment community for its stable cash flows, long operating life, low technology risk, and highly predictable generation based upon decades of historical river flow data," FFP New Hydro president and CEO Ramya Swaminathan said.
The amount loaned was not divulged by Crestline Investors, though the Texas-based management firm said the financing reflects its opinion that hydropower is an expanding market.
"With the largest development-stage hydropower portfolio of its kind in the U.S., we believe the company is poised to achieve a significant expansion in its financeable asset base, and to create a meaningful impact on the growing U.S. hydropower industry," Crestline Investors director James Favero said.
A statement from FFP New Hydro said the Boston-based company also has the rights to a further 23 hydroelectric projects that are in the early stages of development and licensing. If constructed, the plants will have a cumulative output capacity of about 280 MW.
HydroWorld.com reported in May that a separate Free Flow Power subsidiary, FFP Project 92 LLC, had filed an application with the Federal Energy Regulatory Commission to develop a 5 MW project at the Kentuck River Lock and Dam.
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