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Alcoa Inc. (NYSE:AA) announced today that it will sell its 351- megawatt Tapoco Hydroelectric Project for $600 million to Brookfield Renewable Energy Partners, a Canadian company engaged in operating renewable energy platforms worldwide.

The Tapoco Hydroelectric Project is composed of four hydroelectric power generating stations and dams, 86 miles of transmission line an 14,500 acres of land located in Little Tennessee and Cheoah Rivers in Eastern Tennessee and Western North Carolina. Alcoa Power Generating Inc., a wholly owned subsidiary of Alcoa Inc. oversees the operations of the project.

The aluminum company originally built the Tapoco Hydroelectric and secured its license from the Federal Energy Regulatory Commission to power its aluminum smelting and rolling mill operations in Alcoa, Tennessee. The Calderwood, Santeetlah, Chilhowee and Cheoah dams became operational from1919 to 1957.

According to the company, the modernization of the Tapoco Hydroelectric Project is near completion and its power generation capacity will increase from 351 megawatts to 378 megawatts.

Richard Legault, CEO and President of Brookfield Renewable Partners said, “We are thrilled to add these high-quality assets to our best-in-class renewable power portfolio. The Tapoco facilities are proven assets and attractively situated in our core markets.”

Brookfield Renewable Energy Partners LP (TSE:BEP.UN)’s main portfolio is hydroelectric with 5,000 megawatts of installed capacity across 67 river systems and 10 power markets in Brazil, Canada and the United States.

After the announcement of the transaction, Alcoa’s stock value during the opening of the trading at the New York Stock Exchange (NYSE) increased by 2.3 percent at $8.71 per share. Brookfield Renewable Partners stock also went up at the Toronto Stock Exchange by 49 cents at C$28.10 per share.

The transaction is subject to Federal and State Regulatory approval. The companies expect to seal the deal by the end of 2012. J.P. Morgan is providing advice to Alcoa in the agreement.