CALGARY - Canadian Hydro Developers Inc. (TSX:KHD) is snapping up what could become the world's largest offshore wind development, pressing ahead with its growth ambitions as it continues to weigh multiple takeover offers.

The Calgary-based company said Monday it plans to acquire the 4,400-megawatt wind prospect from U.S.-based Wasatch Wind Inc.

The development would be located five to 30 kilometres off the shores of Lake Erie on the Ontario side.

"In terms of an offshore site, it really is ideal," said Canadian Hydro chief executive officer Kent Brown in an interview.

Financial details weren't disclosed and Brown said it's too early to know how much it would cost to build the facility.

The prospect would be eligible for Ontario's feed-in-tariff 20-year contract at a price of $190 per megawatt hour. The province's feed-in-tariff program was introduced this month as a means to boost the development of renewable energy sources.

"We've got a great wind regime. We have interconnection as well, and we've got a strong feed in tariff price. So it's a very attractive prospect from our perspective," Brown said.

Canadian Hydro anticipates the project will be built in stages with the first phase of 400 to 500 megawatts coming online by the fourth quarter of 2014. When complete it will be able to supply enough renewable energy to power over two million homes.

Multiple regulatory and environmental approvals will be required before construction can start.

The acquisition comes as Canadian Hydro continues to fend off a $654-million hostile takeover bid from TransAlta Corp. (TSX:TA), which has been extended several times since it was first made in July.

Canadian Hydro has said it is entertaining multiple alternative offers and that TransAlta's offer is no longer the best one.

Brown said that process is taking place completely separately from the acquisition Monday.

"We have a job to do at Canadian Hydro and that's running our business, and this is part of running our business," he said.

TransAlta has questioned Canadian Hydro's ability to finance its growth plans in the economic downturn, and has argued the green energy player would be better off under the wing of a bigger entity.

"Absent this offer, we believe they face significant uncertainty in today's environment," TransAlta chief executive Steve Snyder said on a conference call with analysts in July.

"Our industry is highly capital intensive and financing can be challenging as a small, standalone company."

Brown called that contention a "red herring."

"We've always been able to grow and finance our business in good times and bad times," he said, pointing to the startup of two wind facilities in Ontario that recently doubled the size of the company.

Financing the construction shouldn't be too much of an issue for Canadian Hydro, since it would be several years out, said Canaccord Adams analyst Bob Hastings.

"Their cash flow would be picking up and they should be paying down debt by that point. Depending on how large it was, they may need to raise new equity," he said.

The acquisition shouldn't have any effect on how the takeover battle shakes out, he added.

"Given the value of project is still well down the road and that it did pay for the asset, it would not change the valuation one iota."

Established in 1989, Canadian Hydro owns and operates 21 hydro, wind, hydroelectric and biomass-fired plants in British Columbia, Alberta, Ontario and Quebec.

Wasatch Wind is a Utah-based wind project developer with activities throughout the western U.S. and Ontario. The company developed the first commercial wind farm in Utah, and hopes to expand projects in that state, as well as in Wyoming and Nevada.

Canadian Hydro shares fell eight cents to $5.07 in trading on the Toronto Stock Exchange Monday -- well above TransAlta's offer price, suggesting investors expect a better offer to come along.

TransAlta shares rose 12 cents to $21.63.