Algonquin Power & Utilities Corp. (AQN.TO) says it is partnering with Spain-based Abengoa, S.A. on a new joint venture focused on global clean energy and water projects.

The company says it will also buy a 25 per cent interest in Atlantica Yield plc from Abengoa for about US$608 million to expand its international project portfolio.

Algonquin says the Atlantica deal will give it cash flow from the company's long-term contracted clean energy and water infrastructure assets.

It says the Abengoa partnership offers near-term development opportunities representing some US$300 million in investment opportunities.

The company says Atlantica owns and operates 21 facilities including clean power generation, electricity transmission lines and desalination plants.

Algonquin is a diversified utility with generation, transmission and distribution assets in Canada and the United States.