Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) and RWE Renewables GmbH
(FRA: RWE AG) strengthen their position in the German offshore wind
market through an agreement to co-develop a cluster of offshore
wind projects in the German North Sea with a total gross capacity
of 1.3 gigawatts (GW). The partners signed an agreement to
establish a joint venture company through which they plan to
jointly develop, construct and operate the cluster of three
offshore wind projects. The cluster will include the 433 MW N-3.8
(Nordsee 2) site, the 420 MW N-3.5 (Nordsee 3) site and the 480 MW
N-3.6 (Delta Nordsee) site.
In addition to its position in the N-3.8
(Nordsee 2) and N-3.5 (Nordsee 3) sites, Northland will also gain
access to the N-3.6 (Delta Nordsee) site, which RWE has step-in
rights for 100% of the lease, while at the same time, RWE will
increase its position in the N-3.8 (Nordsee 2) and N-3.5 (Nordsee
3) sites. The size and scale from the formation of the cluster is
expected to allow the partnership to unlock synergies.
Specifically, the realization of synergies in development and
construction costs as well as operating costs are expected to
result in enhanced returns for the projects. Northland will also
benefit from enhanced offtake opportunities through the formation
of the partnership and the cluster to secure offtake agreements for
the projects, once complete. The cluster will be in close proximity
to the existing 332 MW Nordsee One wind facility in which Northland
and RWE are partners already.
“The formation of the cluster aligns with our
offshore wind ambitions and strategy of growing our position as a
global leader in offshore wind,” said Mike Crawley, President and
Chief Executive Officer of Northland. “We are proud to enhance our
partnership with RWE to form the cluster to further strengthen our
position in the North Sea. This cluster will provide us with
significant size and scale and allows us to support the
decarbonization efforts in Germany.”
Sven Utermöhlen, CEO Wind Offshore, RWE
Renewables: “Germany has set itself ambitious climate targets,
thereby establishing a significant growth potential for renewable
energies. Offshore wind power plays a central role in this and is
indispensable for supporting the decarbonization of industry in
particular. RWE is making its contribution to this and is
significantly stepping up the pace here. This includes the
collaborative delivery of the 1.3 GW offshore cluster with
Northland Power, through which we can achieve considerable
synergies to deploy at our new wind farms, while at the same time
actively supporting the energy transition in our home market
Germany.”
Northland and RWE hold step-in rights for N-3.8
(Nordsee 2) and N-3.5 (Nordsee 3), while RWE holds step-in rights
for the N-3.6 (Delta Nordsee) lease. In early November, the
partners exercised their step-in rights for N-3.8 (Nordsee 2),
allowing them to match the awarded bid in the auction and retain
the lease. The auction for the remaining leases, will be held in
2023. For both sites the joint venture holds step-in rights.
Northland will hold a 49 percent interest in the
new joint venture with RWE holding 51 percent. The projects will be
developed and managed on a joint basis by both parties and are
expected to achieve commercial operations between 2026 and
2028.
NORTHLAND POWER
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables,
solar and efficient natural gas energy, as well as supplying energy
through a regulated utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in 3.2 GW (net 2.8 GW) of operating generating capacity
and a significant inventory of early to mid-stage development
opportunities encompassing approximately 4 to 5 GW of potential
capacity.
Publicly traded since 1997, Northland's common
shares, Series 1, Series 2 and Series 3 preferred shares trade on
the Toronto Stock Exchange under the symbols NPI, NPI.PR.A,
NPI.PR.B and NPI.PR.C, respectively.
RWERWE is leading the way to a
green energy world. With an extensive investment and growth
strategy, the company will expand its powerful, green generation
capacity to 50 gigawatts internationally by 2030. RWE is investing
€50 billion gross for this purpose in this decade. The portfolio is
based on offshore and onshore wind, solar, hydrogen, batteries,
biomass and gas.
RWE Supply & Trading provides tailored
energy solutions for large customers. RWE has locations in the
attractive markets of Europe, North America and the Asia-Pacific
region. The company is responsibly phasing out nuclear energy and
coal. Government-mandated phaseout roadmaps have been defined for
both of these energy sources. RWE employs around 19,000 people
worldwide and has a clear target: to get to net zero by 2040. On
its way there, the company has set itself ambitious targets for all
activities that cause greenhouse gas emissions. The Science Based
Targets initiative has confirmed that these emission reduction
targets are in line with the Paris Agreement. Very much in the
spirit of the company’s purpose: Our energy for a sustainable
life.
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements including certain future oriented
financial information that are provided for the purpose of
presenting information about management’s current expectations and
plans. Readers are cautioned that such statements may not be
appropriate for other purposes. Northland’s actual results could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, the events anticipated
by the forward-looking statements may or may not transpire or
occur. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as “expects,” “anticipates,”
“plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,”
“projects,” “forecasts” or negative versions thereof and other
similar expressions or future or conditional verbs such as “may,”
“will,” “should,” “would” and “could.” These statements may
include, without limitation, statements regarding Northland’s
expectations for future expected adjusted EBITDA, Free Cash Flows
(and as adjusted) and per share amounts, guidance, the completion
of construction, attainment of commercial operations, the potential
for future production from project pipelines, cost and output of
development projects, litigation claims, plans for raising capital,
and the future operations, business, financial condition, financial
results, priorities, ongoing objectives, strategies and outlook of
Northland and its subsidiaries. These statements are based upon
certain material factors or assumptions that were applied in
developing the forward-looking statements, including the design
specifications of development projects, the provisions of contracts
to which Northland or a subsidiary is a party, management’s current
plans and its perception of historical trends, current conditions
and expected future developments, as well as other factors that are
believed to be appropriate in the circumstances. Although these
forward-looking statements are based upon management’s current
reasonable expectations and assumptions, they are subject to
numerous risks and uncertainties. Some of the factors that could
cause results or events to differ from current expectations
include, but are not limited to, risks associated with revenue
contracts, impact of COVID-19 pandemic, Northland’s reliance on the
performance of its offshore wind facilities at Gemini, Nordsee One
and Deutsche Bucht for approximately 60% of its Adjusted EBITDA and
Free Cash Flow, counterparty risks, contractual operating
performance, variability of revenue from generating facilities
powered by intermittent renewable resources, offshore wind
concentration, natural gas and power market risks, operational
risks, recovery of utility operating costs, permitting,
construction risks, project development risks, acquisition risks,
financing risks, interest rate and refinancing risks, liquidity
risk, credit rating risk, currency fluctuation risk, variability of
cash flow and potential impact on dividends, taxation, natural
events, environmental risks, health and worker safety risks, market
compliance risk, government regulations and policy risks, utility
rate regulation risks, international activities, reliance on
information technology, labour relations, reputational risk,
insurance risk, risks relating to co-ownership, bribery and
corruption risk, legal contingencies, and the other factors
described in the “Risks Factors” section of Northland’s 2020 Annual
Information Form, which can be found at www.sedar.com under
Northland’s profile and on Northland’s website at
northlandpower.com. Northland’s actual results could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur.
The forward-looking statements contained in this
release are based on assumptions that were considered reasonable as
of the date hereof. Other than as specifically required by law,
Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to
reflect the occurrence of unanticipated events, whether as a result
of new information, future events or results, or otherwise.
For further information, please
contact:
Northland Power Inc.Wassem Khalil,Senior
Director, Investor Relations & Strategy+1 (647)
288-1019Investorrelations@northlandpower.com
RWE Renewables GmbHSarah KnauberPress
spokesperson+49 201 5179-5404sarah.knauber@rwe.com
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